Owning your own home has always been the average person’s dream, but uncertain economic climates have at times made the dream of owning real estate in Australia seem like an impossibility. Therefore, at various times throughout Australia’s history, the Federal, State and Territory governments have stepped in to try to ease the pressure on would-be first home buyers, and without these initiatives far fewer people would have been able to get involved. The following is a brief look at some of the various first home buyer schemes throughout the years, most of which are still in effect today.
The War Service Home Act (1918)
This important act represented Australia’s first ever government scheme to encourage first home buyers, and was aimed at helping young veterans returning from the First World War to be able to get a place of their own and re-establish themselves. The act provided for low interest, 45 years loans for servicemen and women, and helped thousands of veterans get established in their first new homes.
The First Home Owner Grant (FHOG)
Introduced in July of 2000 to help offset the cost of GST for new homeowners, the First Home Owner Grant entitles new homeowners to a payment of $7000 towards the cost of their new home. These fantastic grants are funded by the Federal Government in conjunction with the various states and territories, with eligibility requirements and the administration of the grants left up to the state or territory where it is being awarded.
The First Home Owners Boost (FHOB)
This scheme was introduced at the height of the global economic crisis in an attempt to help keep alive the dream of owning one’s own home in Australia. Homes bought after October 14, 2008 and before June 30, 2009 are eligible for the boost, with new dwellings receiving the largest amount of assistance, often up to $14,000.
The First Home–New Home Scheme (NSW)
Under this scheme, first home buyers purchasing a new home up to $500,000 in value, or property valued up to $300,000, are eligible for exemptions or reductions in duties and fees related to the purchase.
The First Home Owner Concession (NT)
This great program allows for a concession on stamp duty of any new home purchased up to a value of $750,000, or land purchased up to $375,000 in value.
Another fabulous initiative from the Northern Territory government, HOMESTART consists of three separate loans, which are designed to encourage middle-income earners to kick on and get their own place.
The First Home Bonus (VIC)
The Victorian government has provided a huge boost to first home buyers by providing assistance to those having their first home built, as long as the value of the home doesn’t exceed $600,000. New homeowners deemed eligible can receive up to a $13,000 bonus towards their new home’s construction, and may also be eligible for a reduction in the stamp duty owed.
Stamp Duty Concessions & FHOG (QLD)
The figures for Queensland have shown that a stamp duty reduction has really helped first home buyers to enter the market. With the $7000 FHOG plus stamp duty concessions of up to $15,000, new buyers have made up twenty percent of all new owner occupied dwellings that were financed in April 2012. The lower interests rates plus the strategy of cutting stamp duties from the state have helped to improve the real estate market in Queensland by encouraging more first buyers to enjoy the Australian dream.
There is nothing more exciting than finally owning your own home, and though it might seem like you will never be able to afford it, there are some great financial incentives available. Whether you are eyeing off real estate in Noosa or Stawell, a little boost from the government can make all the difference. So do some research into what schemes or grants you may be eligible for, because it might be possible to be in your first new home sooner than you think.