Understanding your financial responsibilities and assistance before buying your first home - Accounts NextGen

Understanding your financial responsibilities and assistance before buying your first home

Understanding your financial responsibilities and assistance before buying your first home

The Australian government has announced a Homebuilder grant. This grant will provide the owners-occupiers a grant of $25,000 for building new homes or renovations in their existing homes. But this grant will be available for only those who have signed the contracts between 4 June 2020 to 31 December 2020.

Some important information for the first home buyers:

Those who are buying or building a new home worth $750,000 are eligible for First Home Owner Grant. And if you are buying this home in regional Victoria, you will get $20,000.

Take a look at the exemptions and concessions in this grant:

  1. Young Farmer’s exemption/concession.
  2. First-home owner with family exemption/concession (up to $200,000).
  3. Principal place of residence concession (up to $550,000).
  4. First-home buyer duty exemption/concession (this grant is excluded from the FHOG and can go up to $750,000).
  5. First-home buyer reduction (up to $600,000).
  6. Off-the-plan concession.
  7. Pensioner concession (up to $750,000).

While buying a home in Victoria, you should know that Digital Duties Form is compulsory for all property transfers.

Who is eligible for First Home Owner Grant?

Anyone building a new home can get a $10,000 grant. Your home should not be more than 5 years old and its value should be up to $750,000. You are not eligible for this scheme if you have

  • Owned a home in Australia either separately or jointly.
  • Received an FHOG in Australia.
  • Lived in a home in Australia for more than 6 months and you owned or partly owned that home.

Concessions and exemptions in detail:

In this section of the blog, we are going to talk about the concessions/exemptions in detail. This is very necessary to know about it for your financial benefits.

  1. Young Farmers Exemption/concession:
  • All the farmers who are eligible for this scheme can get it if they are below 35 years and buying new farmland.
  • Farmland having a value up to $600,000 can get an exemption from the duties on the first $300,000.
  • Those farmlands which have a value between $600,000 to $750,000 can get duty concession.
  • You can apply for either the PPR concession of the Young Farmers concession. Choose the one that suits your demands perfectly.
  1. First-home owner with a family exemption:
  • This exemption is for those who have bought their home on or after January 1, 2006, are eligible for this scheme. A complete exemption is available if your property is worth $150,000 and a concession is available if the value of your property is up to $200,000.
  1. For the pensioners:
  • If you are a pensioner, you have to be sure that you can apply for only among the duty exemption, concession, or pensioner exemption. Be careful before you choose one.
  1. The Principal Place of Residence (PPR) concession:
  • This concession is only for those who are living in their homes and they intend to live there for the upcoming 12 months (excluding holidays and other investments).
  1. Off-the-plan concessions:
  • If you are buying an off-the-plan property as your first home, you can get this grant but you must live in that property as your home. The contract must be signed on or before 1 July 2017. This concession reduces the amount from the contract price of your home, the price involved in refurbishment occurring after signing the contract.
  1. First-home buyer reduction:
  • You can get a duty exemption of up to 50% if you have entered a contract on or before 1 July 2017 and the property is worth $600,000. Though it depends on the date when you signed your contract on or after 1 September 2014, you can get up to a 50% concession.

Conclusion:

We have given you all the information about getting the grants and concessions if you are a first home buyer.

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