Grants for new home buyers are helpful ... but make sure you know what works for you.
The increases in grants for first home buyers in Queensland and NSW are very welcome but the Mortgage and Finance Association of Australia (MFAA) warns borrowers about the increasing complexity of rules that apply in individual states.
Both the Queensland and NSW Governments are in the process of lifting their grants for first home buyers to $15,000 in an effort to stimulate new housing activity.
The Queensland grant has increased from $7,000 to $15,000 and applies to first home buyers purchasing a newly constructed or off-the-plan property with contracts signed after September 12, 2012. First home buyers, who are purchasing an existing dwelling, will only have until October 11, 2012, to sign their contract and be eligible for the $7,000 grant, which will be phased out on that date.
From October 1, 2012, the NSW Government’s $7,000 First Home Owner Grant will be replaced by the $15,000 First Home Owner Grant (New Homes) Scheme.
The Victorian Government continues to provide $7,000 as a First Home Owners Grant, accompanied by a staggered 50 per cent cut in stamp duty (phased in over 4 years) for new properties worth up to $600,000, with the first 20 per cent drop already in place with another 10 per cent cut from January 1, 2013 and the succeeding two years.
In South Australia, the First Home Owners Grant initially was mooted to fall from $8,000 to $4,000 on July 1, 2012. However the SA Treasurer announced in May 2012 that the maximum First Home Bonus Grant will remain at $8000 until 30 June 2013 and will be completely abolished after this date.
In Western Australia the grant has been reduced to $7,000 and will be paid at settlement of an established home or when a slab is poured on a new home. The WA Government also has Keystart Home Loans for affordable housing and stamp duty concessions for first home buyers for purchases of vacant land.
Chief Executive Officer of the MFAA, Mr Naylor said “While we welcome the increases in grants and stamp duty concessions, the array of incentives and recent changes make the grant schemes a very confusing maze for first home buyers.
“It is even more important for first home buyers to use MFAA Approved Broker to lead them through the many and varied incentives that are on offer across Australia. This is one area where there is a strong case for a unified and simple national scheme of grants for first home buyers”, he concluded.
Further information:
__small.png)
