Written on the 16th of January 2009 by Hot Property Specialists Buyers Agency
The Federal Government has boosted the First Home Owners Grant which is administered by the state government. $1.5 billion will be invested to help first home buyers buy a home. If eligible, the first home buyer will be given an:
·additional $7,000 for buying an established home; totalling $14,000 or an
·additional $14,000 for buying or building a new home, totalling $21,000
If you are purchasing an established home, you may be eligible for the $7,000 boost in addition to the existing $7,000 grant, totalling $14,000.
If purchasing a newly constructed home, you may be eligible for the $14,000 boost in addition to the existing $7,000 grant, bringing the total grant payable to $21,000. This home must be the first sale of that home and must never have been previously occupied, including by the builder, a tenant or other occupant.
To be eligible for the $14,000 boost to a build a new home, construction must commence within 26 weeks of the contract and must specify a completion date within 18 months of the commencement of construction, or construction must be completed within 18 months of the construction commencing.
This additional boost is only for a limited time and contracts must be entered into on or after 14 October 2008 and on or before 30 June 2009.
Any contract entered into prior to 14 October will not be eligible for the boost.
In addition to the above, those first time buyers spending under $500,000 pay no stamp duty, so they really do get a head start.
For more information regarding the boost or to see if you are eligible, you can contact The Office State Revenue:
At present we are starting to see the first home buyer market quite active – and with the cut off date of 30 June 2009 for the increased grants progressing closer, there will be a sense of urgency starting in the market in the coming months.
We believe that this increased activity, particulary in the $300,000 to $400,000 bracket, is helping to push prices up. In our opinion, come the end of February, early March 2009 prices will be increased by some 10% on what they were prior to Christmas. This will only be escalated by the decrease in interest rates predicted in early February 2009.
If you need help or advice along the way – please dont hesitate to contact us. We know that when purchasing at any time, but especially your first home, every dollar counts so we have released special packages particularly for first home buyers to help you get into the market sooner, make sure the process runs as smoothly as possible and to ensure you don’t pay more than the property is truly worth.
