DUTY AND THE BEAST (ie FIRST HOME OWNERS GRANT)
Long ago and far away the State Government in it’s wisdom created a Beast called “The First Home Owners Grant”.
This was designed to stimulate investment in domestic housing and drive the State economy forward.
We have a new version and a new threshold and if you or a family member meet the eligibility criteria, now might be a good time to take advantage of the payment.
As announced in the State Budget 2016-17, additional duty of 3% will apply to acquisitions of residential land by foreign persons (including companies and trusts) from 1 October 2016.
This additional transfer duty is imposed to fund additional payments under the State Government First Home Owner’s Grant.
The Queensland First Home Owners’ Grant is a state government initiative to help first home owners to get their new first home sooner. Depending on the date of your contract, you’ll get $15,000 or $20,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000). You can even buy off the plan or choose to build yourself.
Note: The $20,000 Queensland First Home Owners’ Grant is not available to contracts that replace previous contracts entered into before 1 July 2016.
To be eligible for the grant:
- You must be an Australian citizen or permanent resident (or applying with someone who is).
- You or your spousemust not have previously owned property in Australia.
- You must be at least 18 years of age.
- You must be buying or building a brand new home, valued under $750,000.
This means a significant opportunity for young people trying to purchase their first home and we recommend that you take advantage of it while you can.
Remember, the payment must be considered as only one part of the equation. Careful planning, research and valuation evidence must be obtained before jumping into a contract. You must have a reasonable due diligence process for the Contract including Building and pest reports and conducting adequate searches of the property. Ask us how we can help with a fixed fee solution today!