By Larry Schlesinger
Wednesday, 12 September 2012
http://www.propertyobserver.com.au/queensland/the-$15000-queensland-first-home-owner-construction-grant-what-first-home-buyers-need-to-know/2012091156510
From today a new $15,000 first-home owner construction grant (FHOCG) is available in Queensland, replacing the $7,000 first-home owner grant, which has run since 2000.
The FHOCG applies to new property bought or built at a value under $750,000, meaning these buyers will be $8,000 better off under the new scheme.
There are no state government grants for existing properties bought by first-home buyers, who will now be $7,000 worse off – although the Queensland government claims this incentive only served to push up house prices by $7,000.
In addition, under a scheme which has operated since August last year, first-home buyers pay no stamp duty on homes valued up to $500,000 – a saving of $8,750 and full exemption for vacant land purchased to build a new home up to a value of $250,000.
First-home buyer stamp duty concessions apply to a home purchase price or value of $550,000 and to land up to $400,000 – the rates can be found on the Queensland Office of State Revenue website.
A first-home buyer buying a new median-priced Brisbane home valued at $400,000 would be entitled to the $15,000 first home owner construction grant and would pay no stamp duty (a saving of $5,250).
Before September 12 the same first-home buyer would have received $7,000 under the first-home owners’ grant and the same stamp duty savings.
The Queensland state government has released the following FHOCG summary to assist first-home buyers.
These are the six things you need to know:
- The FHOCG is for first-home buyers who are buying a newly constructed or off-the-plan property.
- The FHOCG replaces the first-home owner grant which was $7,000.
- Those first-home buyers who have purchased an existing dwelling will have until October 11 to finalise their contract (to be eligible for $7,000 grant).
- First-home buyers signing contracts for new properties before September 12 will receive $7,000, and those signing on or after September 12 will receive $15,000.
- The program will be administered within existing arrangements in the Treasury Department.
- Major banks and financial institutions will continue to advertise the FHOCG in their loan marketing material, reducing the cost for taxpayers.
The following eligibility criteria still apply:
- It must become your principal place of residence within one year of taking ownership.
- It must be your principle place of residence for at least six months.
- You must not dispose of all or part of the property within one year after you start to occupy the residence as your home.
- The property must be bought or built at a value under $750,000.