GETTING STARTED ON THE PROPERTY LADDER

It is not easy to get on the property ladder in some parts of Australia particularly in some of the affluent suburbs of Sydney and Melbourne.

First home buyers have to have a sufficient deposit to obtain a mortgage to finance home purchase and then the first home buyer’s income must meet the requirements of the mortgage lender to service the loan.

Add to this is the “once only” purchase costs of Stamp Duty, legal fees, building and pest reports, mortgage application fees and valuation fees and in some cases, mortgage guarantee insurance.

STATE GOVERNMENT FIRST HOME OWNERS GRANT

The Queensland Government provides a maximum non repayable grant of $15,000 to purchase a brand new home or a “substantially renovated home” which is a home that has never been sold or lived in since the renovations had been completed and the building work was subject to GST which has been paid. A typical home that has been substantially renovated could include a "Queenslander" timber house that has been raised to provide additional living accommodation underneath.

Applicants for the grant must be 18 years of age or older, must never have purchase a property before either as an individual or a “couple” to live in but applicants who have purchased an investment property and has never lived in it may be eligible. An applicant must be an Australian Citizen or a permanent resident or and least one of the “couple” is an Australian Citizen or a Permanent Resident. The maximum price of the property cannot exceed $749,999.

Successful applicants must move into the property within one year of completion and live there for six continuous months.

Unfortunately, the Grant is not available if part of all of the deposit for the property is being provided by a person who will reside in the property as a “tenant” so a parent cannot help children obtain a grant on the understanding they could move in with the children.

BUYING AN INVESTMENT PROPERTY AND GETTING A GRANT FOR YOUR OWN HOME

It is possible for a couple to buy an investment property and then purchase a property as a principle place of residence and obtain the First Home Owners Grant providing they have never lived in the investment property.

STAMP DUTY INCENTIVES FOR FIRST HOME BUYERS

The Queensland State Government provides tax and Stamp Duty concessions for First Home owner and details can be found at https://www.treasury.qld.gov.au/taxes-royalties-grants/index.php