Two schemes designed to encourage property ownership have now made buying your first home in Queensland easier and more attractive.
The State Government will provide $15,000 under its First Home Owners Grant to applicants who are planning to purchase a new property – one of the most generous schemes on the eastern seaboard.
It can be combined with a promised $25,000 grant from the Federal Government for owners – including first-home buyers – to renovate an existing residence substantially. This program, known as HomeBuilder, will be delivered through the state to bolster the construction industry amid the pandemic.
The State Government grant may be used to buy or build a new home and covers houses, units, and townhouses. You may also use the money to buy an apartment off-the-plan.
An additional incentive is offered for those intending to live in regional Queensland. If eligible, you’ll receive an additional $5,000 on the completion of your purchase or the construction of your new property, so long as it’s valued at less than $750,000.
Stamp duty concessions are also available to first home buyers. You’ll be exempt if you buy a block of land for $400,000 or less so long as you intend to construct your primary residence – that’s a saving of $5,250.
You can save a maximum of $8,750 on stamp duty if your first home is bought for $500,000 or less. Concessions on stamp duty are also available for properties valued above $500,000.
Some of the details around the various levels of the grant are quite complex, and you may need the help of your accountant or mortgage broker to apply. As your local real estate agent, I would be happy to help you find properties that may fit the criteria for these schemes.
Here are a few of the basic rules that apply.
- You must move into your home within one year of the completed purchase.
- You must live in the property continuously for six months.
- There’s no need to apply before you buy the property, but your right to a grant expires 12 months after the date of the transaction. Those who contract a builder to construct a new home must apply within a year of completion of the home. This rule applies to owner-builders, too.
- The home must be your primary residence, not an investment property.
- Applicants must be aged 18 or over.
- No trust or company can qualify.
- The Queensland Government advises that you should not use the grant as part of your deposit as it is paid at different times depending on the type of property that is being purchased or built.
- You do not need a deposit as a prerequisite to qualify for the grant.
- Applications can be made through the Office of State Revenue, or an approved bank or lending institution. Talk to your mortgage broker about getting their help to do the paperwork for you.