Nieuvision

Financial Assistance for First Home Buyers

Buying your first home can seem like a daunting process. However, there are some opportunities available to access various forms of financial assistance to help you get into the property market.

Here is a quick look at some ways that might help reduce the cost of buying your first home in South Australia:

First Home Owners Grant

Since 2000 Federal and State Governments have offered first time home owners financial assistance by way of grants to assist in the purchase of their first home. The actual eligibility criteria to qualify for a First Home Owner’s Grant (FHOG) varies from state to state, and so does the amount available.

First home buyers in South Australia may be eligible for a Grant of up to $15,000 for the purchase or construction of a new residential property, including a house, flat, unit townhouse or apartment. Unfortunately, the FHOG ceased for established homes from 1 July 2014.

In order to qualify for the First Home Owner’s Grant, the property must be occupied as each applicant’s principal place of residence for a continuous period of at least six months commencing within 12 months of date of settlement for contracts to purchase, or the date construction is completed for owner builders or contracts to build.

Off-the-Plan Concession

When you purchase a property, you are required to pay stamp duty. The amount of stamp duty you need to pay is calculated based on the purchase price or on the market value on settlement day.

First home buyers may qualify for an ‘off-the-plan stamp duty concession’ to help reduce the amount of stamp duty they need to pay.

The off-the-plan stamp duty concession provides a full stamp duty concession on a transfer of a new apartment or substantially refurbished apartment. In order to qualify for the full concession, you must have entered into a contract between 31 May 2012 and 30 June 2014 (capped at stamp duty payable on a $500,000 apartment).

In order to receive a partial stamp duty concession, you will need to have entered into a purchase contract from 1 July 2014 to 30 June 2017.

For contracts entered into between 20 June 2016 and 30 June 2017 (inclusive), the concession applies to purchases of off-the-plan apartments located anywhere in South Australia not just the Adelaide CBD.

Housing Affordability Funding Grant

The Housing Affordability Fund is an Australian Government initiative aimed at reducing the cost of new homes. The Australian Government assisted a number of councils in South Australia with the costs associated with the delivery of the estate infrastructure on the agreement that the council will pass on the savings to eligible purchasers.

The intention of the Housing Affordability Fund was to benefit people buying new homes at reduced prices.

 Affordable Homes Program

The South Australian Government instigated the Affordable Homes Program in an effort to allow eligible home buyers to access various properties across the state at discounted purchase prices. Ideally, the properties available are offered at prices that are lower than the usual market rate, representing a more affordable option for first home buyers to enter the market.

The properties available sometimes include former public and community housing stock, as well as a selection of new homes constructed within new suburban developments.

In order to qualify for the Affordable Homes Program, you must be over 18 and be a South Australian resident. You also must not already own any other residential property or land, and you will need to live in the property as your primary place of residence after settlement. You will also need to pass an income and asset test to ascertain your eligibility for the program.

Bank Rebates/Promotions

Banks, lenders and financial institutions continually offer a range of bonuses and incentives, and sometimes even cash rebates to attract new customers to their bank. The actual bonuses and incentives will vary between different financial institutions, so it’s worth checking to see what’s available when you’re ready to buy.

Call Nieuvision today on 1300 832 554 and discuss how we can help make buying your first home a little easier financially. We’ll work with you to find out which of these opportunities might be suitable for you and whether you are eligible for the full amount of financial assistance available.

MORE INFO:
Kym Russell
Finance & Property Consultant
e: krussell@nieuvision.com.au

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Disclaimer: We recommend that you seek independent financial and taxation advice before acting on any information in our articles and newsletters. They contain general information only and have been prepared without taking into account your personal objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.