The current First Home Owner Grant (FHOG) is $7,000
The First Home Owner Grant Scheme is an initiative to help first home owners. Eligible first home owners can receive the grant regardless of their income, the area they are planning to buy / build or the value of their first home. To be eligible you must first satisfy certain simple requirements as set out in the First Home Owner Grant Act 2000.
Eligibility requirements
FHOGS is available to people buying or building their first home and who meet the following eligibility criteria:
- Each applicant is a natural person and not a company or trust
- At least one applicant is a permanent resident or Australian citizen
- Each applicant must be at least 16 years of age
- All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000
- All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia
- Each applicant has entered into a contract for the purchase of a home or signed a contract to build a home on or after 1 July 2000. In the case of an owner-builder, laying of the foundations commenced on or after 1 July 2000
- This is the first time an applicant and/or their spouse/de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory
- At least one applicant will occupy the home as their principal place of residence for a continuous period of six months, commencing within 12 months of settlement or construction of the home
First Home Plus is in addition to the FHOG and provides exemptions or concessions on transfer stamp duty and mortgage duty for first home buyers and builders in NSW. Different States have some slight variations to the way they administer the First Home Owner Grant. These can be viewed by clicking here and selecting your State.
Important Points
If, BEFORE 1 July 2000, you or your spouse owned a property, you are NOT eligible.
If, AFTER 1 July 2000, you or your spouse owned a property, and you have NOT LIVED IN IT, you are eligible.
To ensure compliance, you or your spouse must live in the property for 6 months. This does NOT have to be from settlement. You will have 12 months from the date of settlement to move in. This means you can move in on the 365th day after settlement and stay there for 6 months.
If you can not move in to comply with this requirement, you are required to return the FHOG. This means you are still eligible when you find a place you move into in the future.
I hope this clears up any FHOG questions.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdHi Mortgage Adviser,
Thanks for posting that…
I was not aware about the ruling after 1st July, 2000, that if you owned properties but did not LIVE IN THEM that you are still eligible for the FHOG.
Cheers,
Del [biggrin]
No problem. I hope you can take advantage now and also of some Stamp Duty discounts. Good luck.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltdwhat would happen if you moved in immediately with the FHOG and Stamp duty exemption, and happened to sell the property 5 months into ownership. are you required to give back the FHOG + stamp duty exemption you used?
Thanks!
The FHOG has to go back. I am not certain what happens with the Stamp Duty concessions. I have never checked. I have never heard them having any requirements to get them other than movig in. I will try and find out for you.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdUnfortunately, the criteria is a little stricter for he First Home Plus (Stamp Duty Concessions). They differ from State to State but this post relates to NSW requirements.
First Home Plus transfer and mortgage duty exemptions or concessions are available if you are buying or building your first home (valued up to $600 000) or buying vacant land on which you intend to build your home (valued up to $450 000), and who meet the following eligibility criteria:
- Each applicant is a natural person and not a company or trust
- At least one applicant is a permanent resident or Australian citizen
- Each applicant must be at least 16 years of age
- None of the applicants or their spouse/de facto have ever owned a residential property in any State or Territory within Australia (either solely or with someone else). Residential property also includes investment properties.
- None of the applicants or their spouse/de facto have previously been party to an approved First Home Plus application
- All applicants buying the property must occupy the home as their principal place of residence for a continuous period of six months, commencing within 12 months of completion of the agreement
Note: these criteria only apply to contracts executed (signed and dated) on or after 1 July 2004.
It looks like if you ever owned a property you are screwed and you do have to live in it for 6 consecutive months starting within the first 12 months.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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