First Home Owners Grant in Victoria – what’s on offer?

Saving for your first home can be a difficult process, especially when property prices are on the increase. For first-time buyers, saving the initial deposit can feel like an insurmountable hurdle that keeps them from getting a foot in the door of the property market.

Thankfully, a number of state governments in Australia offer powerful incentives to first home buyers, helping to bridge the gap required in order to see this buying group move into the market.

 

What’s the value of the FHOG?

What’s on offer differs from state to state when it comes to the size of the grant and the parameters around its use. For example, the Queensland state government offered $20,000 until December 2017 in order to entice new buyers into building or significantly renovating properties and cause a spurt of growth in the building and real estate industry. Although the grant has now been reduced to $15,000, it’s still helped thousands of young buyers achieve their first home-owning dreams.

In Victoria in particular, the First Home Owner Grant provides $10,000 to purchasers who are buying or building a ‘new’ home. Properties must be purchased as residential homes, rather than investment properties or holiday homes, in order to qualify.

If you’re looking to build in regional Victoria, the news gets even better: The First Home Owners Grant is increased to $20,000 for purchasers with signed contracts between 1 July 2017 to 30 June 2020. Not a bad incentive to move to the country for some fresh air and bonus savings!

 

What criteria do I need to satisfy?

To be eligible for the First Home Owners Grant in Victoria, you must satisfy the following criteria…

• You and/or your partner must never have received a first-home owner grant in Australia (so sadly, you can’t pick up the grant in one state and then double dip in another).
• You and/or your partner must never have owned a home or any other residential property in Australia, either separately or together, before 1 July 2000.

If you or your partner have purchased a property after 1 July 2000, but have never lived there yourself, you may still be eligible to receive the FHOG on your upcoming home purchase.

 

Other criteria include;

• A minimum of one of the applicants must intend to live in the home as their principal place of residence for a minimum of 12 continuous months within 12 months of completion of construction or settlement.
• You must be at least 18 years of age.
• You must be an Australian citizen or permanent resident.

If you’re looking for a helpful leg up in the journey to owning your first home, understanding how the First Home Owners Grant can work on your behalf is a great place to begin. The difference to your financial abilities may be immense, with many buyers finding themselves able to enter into the property market months, or even years, earlier than they could have without it. Find out more about the application process at https://www.sro.vic.gov.au/fhogapply.