Buying a house in Victoria and government grants

Posted on November 11, 2011

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If you are looking to buy a newly built dwelling as your first home and saved up a nice deposit, how pleased would you be if someone said to you, “You know what, I’m going to give you $33,200 to help you out.” That would be absolutely sweet wouldn’t it? Yes it would.

Combining the First Home Bonus and the First Home Owner Grant (FHOG) can help you out by giving you up to $20,000. And if you purchase in regional Victoria, you are eligible for an extra $6,500. How great is that!

Saving hard is very important when looking to buy a property. You may be tempted to let the government grants do the heavy lifting, but unless you have a saving mentality, you will struggle when it comes to mortgage repayments. Saving for a deposit is a great way of testing how much you are capable of saving. Having a nice sized deposit along with the First Home Bonus and FHOG can help you a long way.

There are another couple of handy concessions and they are called the Principle Place of Residence Concession (or PPR) and the First Home Buyer Duty Reduction. The PPR will reduce the stamp duty that you need to pay by up to $3,100. After the PPR concession is calculated, the First Home Buyer Duty Reduction brings down the stamp duty payable by 20%. Next financial year it will be 30%. The year after will be 40%. And after that, 50%. Then it will stay at a 50% reduction. Woohoo!

These grants however can change. Only last year, you could have been eligible for another $14,000 (on top of everything else I listed above) with the First Home Owner Boost. Entering into a contract now however does not allow you to apply for it.

My advice: save hard and take advantage of all the grants out there.

So, with all this information comes a few handy links to see if you are lucky enough to match all the boxes::

Direct link to the PPR and First Home Buyer Duty Reduction Statutory Declaration

The First Home Bonus

The First Home Owners Grant (FHOG)

First Home Saver Account

State Revenue Office Website

Happy hunting and good luck!

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