If you are saving to buy your first home you will no doubt already have heard about the proposed sweeping changes in Victoria to the First Home Buyers Grant and stamp duty for First Home Buyers.
Given the changes have just been announced I thought I would provide a short run-down on the changes and how they may affect your upcoming property purchase decisions.
First Home Owners Grant
The First Home Owners Grant was introduced in 2007 and was originally provided for both the purchase of existing homes and the building of new homes. The amount of the grant has fluctuated however from 1 July 2013 the grant has been exclusively for the construction of new homes and been $10,000 for both metropolitan and regional first home buyers.
How much is it?
The State Government has now announced that the grant will be increased to $20,000 for regional buyers from 1 July 2017. Metropolitan Melbourne buyers will still receive the $10,000 under the proposed changes.
When will it come in?
The changes are still proposed, however if enacted, this additional amount will apply to all build contracts signed after 1 July 2017 and before 30 June 2020.
How does the Grant get paid?
If you are borrowing from a bank, they will liaise with the State Revenue Office and pay the amount to the builder as part of the first stage; usually this will be once the slab is poured.
If you are paying cash the grant is refunded to you after construction of the home, you will need to send in, with the required application forms, your Certificate of Occupancy to the State Revenue Office with your bank details and the money will be deposited into your nominated account.
To be eligible both you and your partner must not have received a grant or owned a property in any State or Territory of Australia. You must be a permanent resident or Australian Citizen and you must move into the property within 12 months and remain living there for at least 12 months. The value of the house will also need to be under $750,000.
Please do not hesitate to contact us on 03 5445 1000 to discuss the proposed changes to the Grant and how they may affect your upcoming purchase.