Two schemes designed to encourage property ownership make buying your first home in Western Australia more attractive.
The State Government will provide $10,000 under its First Home Owner Grant and offer discounts on stamp duty.
Back in mid-2017, the grant was $15,000 but was reduced as the West Australian property market recovered from falling mineral prices and the subsequent downturn in the state economy.
However, the State Government has eased the burden of stamp duty on first-time buyers with a concessional rate. It applies the levy to any property value up to $530,000 or $400,000 for land. No further tax is applied to any additional cost above those thresholds.
The homeowners grant is available to any first-home buyer regardless of the age or state of the property. Other states apply stringent rules in this area, believing this bolsters their construction industries.
In Western Australia, a first-home grant is generally paid on the date of contract settlement. If you’re building a new home, you can receive the payment once the concrete slab is poured.
There is also a federal government scheme to assist you. First-time buyers can use the First Home Super Saver Scheme, which allows you to make additional contributions to your superannuation scheme to save for a deposit.
Any cash you put aside through this scheme – over and above your compulsory super contribution – will be taxed at 15% rather than at your usual rate.
As your local real estate agent, I can help you find properties that might be suitable under these grant schemes. Other professionals, such as a licensed mortgage broker, will also be able to guide you in applying for the grants.
In the meantime, here some of the basic rules for the first homeowner grant.
- You must live in your new home for at least six months within 12 months of the home’s contract settlement date.
- Applications for the grant must be made to the Office of State Revenue. A contract of sale or building agreement must be submitted with your forms.
- If you buy in Perth, your new home must have been purchased for less than $750,000.
- No grant will be given to purchasing an investment property.
- You must be aged over 18.
- You (or your partner) must be an Australian citizen or a permanent resident.
- You (and your partner) must not have owned Australian residential property before.
- The First Home Super Saver Scheme has a set of complex rules. Consult the Australian Taxation Office about your eligibility and how to use this facility. The ATO says it may take up to a month to agree to release the funds.