Buying a property as a first home buyer can be an intimidating and difficult process. However, you may be able to access certain concessions that assist you with the financial aspect of getting your foot on the property ladder, the main one being the First Home Owner Grant (FHOG).
It’s important to ensure you have a good understanding of the FHOG as there have been some relatively recent changes and it applies to first home buyers differently depending on their circumstances. Below, we provide a thorough guide to the FHOG in Victoria and how it might help you purchase a home.
To be eligible for the FHOG, you must be at least 18 years old at settlement or completion of construction. You (or at least one applicant if applying with a spouse or partner) must also be an Australian citizen or a permanent resident.
Each state handles the FHOG in different ways. In Victoria, the state government offers two options:
You (or at least one applicant) must occupy the new home for at least 12 months, commencing within 12 months of settlement or completion of construction. Australian Defence Force personnel are exempt from this requirement however, as they may be required to serve overseas.
According to the State Revenue Office of Victoria, a new home includes:
Established homes are no longer eligible to receive the FHOG. However, if you are purchasing an established property as a first home buyer and you meet the eligibility criteria for the FHOG, you may be able to get a first home buyer stamp duty exemption or concession (more on that later).
Even though you’ll be receiving a grant of $10,000 or $20,000 depending on your circumstances, it’s important to remember that there will also be a variety of other fees you’ll have to pay. These may include:
In Victoria, homes are exempt from land tax unless they are being used as a holiday home or investment property.
As a first home buyer, you may be eligible for and receive one or more of one of the following concessions, exemptions or reductions depending on your circumstances:
For more detailed information, look at the State Revenue Office of Victoria’s website or speak to an expert in Victorian property law.
If you need assistance with property conveyancing in Melbourne or property law advice in Victoria, talk to the experienced team at Just Conveyancing. Contact us online or call us on (03) 8580 2276 today.