There is much to consider and plenty to research. Firstly you need to work out how much you can borrow. This is where our services will really help you. Make sure you have an accurate and detailed budget that takes into account all expenses associated with purchasing a property including stamp duty, council rates and other fees. We can help you identify these extra costs. Use our budget planner to get a realistic picture of where your money goes now. Use our loan calculator to estimate your repayments.
Many first home owners forget to budget for things they haven’t been used to paying for themselves like electricity, water and other utilities and for items such as insurances.
Budget for maintenance and even simple things like stocking up the fridge and pantry for the first time – many of the things we take for granted when living at home.
Ensure you go to many open inspections and do your research on the internet before purchasing to ensure you have a good indication on property prices in your desired location. If you find that you cannot afford to buy your dream home in your desired location consider adjacent suburbs that may be more affordable.
First home owner grant
The FHOG scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.
Under the scheme, a one-off grant of up to $7,000 is payable to first home owners who satisfy all the eligibility criteria.
Eligible first home owners can receive the grant regardless of their income and the area in which they are planning to buy or build. The grant is not means tested and no tax is payable on it.
First home benefits of up to $24,990 are available, being the $7,000 First Home Owner Grant and a duty exemption of up to $17,990 under the First Home Plus Scheme.
First home owner grant cap
On 1 January 2011, the cap was increased to $835,000. The $835,000 cap applies to all applications where the commencement date of the eligible transaction is on or after 1 January 2011. Applicants who purchase or build a home which has a total value of more than $835,000 will not be eligible for the grant.
The previous cap of $750,000 still applies where the eligible transaction commencement date falls between 1 January 2010 and 31 December 2010 (inclusive). Prior to 1 January 2010 there was no cap applicable.
First home saver accounts
- are aged between 18 and 65,
- have not previously purchased or built a first home in which to live,
- do not have or have not previously had a first home saver account, and
- provide your tax file number to the provider
you can open a first home saver account.
This account provides a simple tax effective way for Australians to save for their first home through a combination of Government contributions and lower taxes. The Government will contribute 17% on the first $5,000 (indexed) of individual contributions made each year. This means an individual contributing $5,000 will receive a Government contribution of $850.
Stamp duty concessions
When you buy a home in Australia, the government imposes a stamp duty tax. This tax is added to the purchase price of your home and is assessed on the sale price of the property. Stamp duty and concessions vary from state to state. First home buyers may be eligible for rebates in the form of stamp duty rebates or exemptions. We will assist you to calculate your stamp duty if applicable.