QLD first home buyer grant set to rise to $20,000
There’s great news for first home buyers in Queensland as the First Home Owner scheme will be boosted from $15,000 to $20,000 for buyers of their first newly constructed property under $750,000.
This new First Home Owner Grant was announced by treasurer Curtis Pitt, as part of next week’s budget and is intended to help with housing affordability. From 1 July 2016, the Great Start Grant will also change its name to be called the Queensland First Home Owners’ Grant.
This new first home buyer scheme is a one-off opportunity and will run for just 12 months starting from 1 July 2016 in order to help boost the construction industry as confidence in the building sector begins to fall.
Mr Pitt stated, “This is a great time to build in Queensland with affordable housing on offer and the Palaszczuk government’s First Home Owners Grant will make it even easier to enter the property market”.
He continued, “The new $20,000 grant will instil more confidence in our building sector, as well as more jobs and help more people into home ownership”.
QLD is home to more affordable housing compared to NSW and VIC. In NSW, the first home owner grant was reduced this year from $15,000 to $10,000, so this $20,000 grant is a very attractive prospect for many first home buyers trying to get a foothold in the market sooner.
So who would be eligible for this grant? Firstly, the property must be new, off the plan or newly constructed. You are not eligible for the grant if you purchase an established property.
You need to be an Australian citizen, permanent resident, or a joint applicant with an Australian citizen or permanent residents to be eligible, providing you meet other requirements.
Furthermore, if you have held an interest in residential property before 1 July 2000, regardless of how the property was used, you will not be eligible for the grant. However, if you have held or currently hold an interest in residential property since 1 July 2000 and the property was or is used solely for investment purposes, you may be eligible for the grant on a subsequent property.
To meet the eligibility criteria, you must move into the home within one year of the completed eligible transaction and you must live here for a minimum of six months continuously. If you have bought the property as a joint application, then both applicants must live in the home.
Unfortunately, if your partner has previously owned a home which they have lived in, then you will not be eligible for the grant.
When do you receive the $20,000 first home owners grant? If you purchase your property off the plan, then you will receive the grant at settlement.
This new first home owner grant of $20,000 is a fantastic opportunity to buy a property when the new tax year starts. New off the plan property already has many incentives including a longer settlement giving you more time to save and the potential for capital gains.
We would urge buyers interested in buying property to start their search now so that by the time July comes, you are ready to buy. There is always the option six months down the track to turn your home into an investment property to take full advantage of the tax benefits that an investment property brings.
To learn more about the first home owners’ grant, Queensland property or why you should buy off the plan, why not speak to one of our expert Property Consultants who will be able to assist you with your property enquiries and find the best property for you.
Call us today on 1300 123 463.
Published on 10th of June 2016 by Marty Stanowich