Buying your first home in South Australia just got easier, thanks to the First Home Owners Grant SA. This cool program gives you a helping hand with up to $15,000 to make your dream of owning a home come true. It’s perfect for those who are ready to stop renting and start owning, but need a bit of a financial boost to get there.
In this article, we’re going to break down everything you need to know about this grant. We’ll cover who can get it, how to apply, and what kinds of homes you can buy with it. Plus, we’ll give you some tips on managing extra costs like stamp duty. Ready to take the leap into owning your first home? Let’s dive in and see how the First Home Owners Grant SA can open the door to your new place!
Details of the SA First Home Owners Grant
The First Home Owners Grant (FHOG) in South Australia is a huge help for people buying their first home. It gives important financial support when you’re just starting out as a homeowner. Let’s check out the main things you need to know about this grant:
How much is the First Home Owners Grant in SA?
The First Home Owners Grant (FHOG) in South Australia offers a great deal for first-time homebuyers – a one-time payment of $15,000. This money is meant to help cover the different costs that come up when you’re buying your first home. It’s a handy boost to make the process a bit easier on your wallet.
What property types are eligible for the first home buyers grant in SA?
When you’re looking at homes to buy with the First Home Owners Grant in South Australia, it’s helpful to know which types are eligible and which aren’t. Here’s a quick breakdown:
Eligible Property Types:
- Brand-New Homes: This includes houses, apartments, townhouses, and other residential buildings that are newly constructed and have never been lived in or sold as a residence.
- Substantially Renovated Homes: These are homes that have gone through major renovations. To qualify, most or all of the house must have been renovated, and no one should have lived in the home since these renovations were completed.
Non-Eligible Property Types:
- Previously Occupied Homes: Homes that have been lived in or sold as a residence before, and have not undergone substantial renovations.
- Minorly Renovated Homes: Homes with only minor renovations or improvements do not qualify. The renovations need to be significant and structural to be eligible.
- Investment Properties: If the property has been used as an investment property (e.g., rented out) before you buy it, it typically doesn’t qualify for the grant.
Understanding these distinctions can help you focus your home search and make the most of the First Home Owners Grant.
Property Value Limit
To make sure lots of first-time homebuyers can use the grant, there’s a limit on how much the home you buy can cost.
No matter if it’s a brand-new place, a renovated one, or a mix of land and building, the total value of the property has to be below the limit.
The maximum value depends on when the property contract was signed:
- $650,000 or less where the contract was entered into on or after 15 June 2023
- $575,000 or less where the contract was entered into between 17 September 2010 and 14 June 2023
Eligibility Criteria for First Home Buyer Grant in SA
Age Requirement:
- You’ve got to be at least 18 years old when you apply. This is because you need to be old enough to legally buy a property.
Residency Status:
- One of the people applying must either live in Australia permanently, be an Australian citizen, or a New Zealand citizen with a Special Category Visa. This is to make sure the grant helps people who are part of the community and plan to stick around.
Property Ownership History:
- You can’t have owned a home in Australia before 1 July 2000. This is to help people who are new to the housing market.
- Also, you shouldn’t have lived in a home you owned for more than six months after 1 July 2000. This keeps the focus on helping first-time buyers.
- But, if you’ve owned an investment property after 2000 and didn’t live in it, you might still be able to get the grant. This is because owning a property for investment is different from owning a home to live in.
Residency Requirement:
- You need to live in the home you buy with the grant for at least six months within the first year after you buy it or it’s built. This is to make sure the grant is used for buying homes to live in, not for investment properties.
It’s really important to check if you meet these rules before you apply for the grant. This grant is a big help for people buying their first home in South Australia, making it easier to achieve the dream of owning a home.
How to apply for the Grant
Applying for the First Home Owners Grant in South Australia is pretty simple, but you need to pick the best way to apply based on your situation and how quickly you need the grant. Here are your two main options:
Applying through a lender or mortgage broker
- Fast Track: If you’re in a hurry, applying through a lender or mortgage broker is usually quicker. This is really handy if you’re on a tight schedule.
- Needed for Settlement: If you need the grant money by the time you close the deal on your property, it’s best to apply through a lender or mortgage broker. They make sure the money is there when you need it to finish buying your home.
- Convenience: Your lender or broker will often take care of most of the application for you, which can save you a lot of hassle.
Direct Application to RevenueSA:
- Another Choice: You can also apply directly to RevenueSA.
- Takes More Time: This way can be slower than going through a lender or broker. If you’re in a rush to buy your home, this might not be the best choice.
- Do It Yourself: This option might be better if you want to handle the application on your own, or if you’re not working with a broker or lender.
Application Deadline:
No matter how you apply, you need to submit your application within 12 months of buying your first home. It’s important to stick to this deadline to make sure you get the grant.
Knowing how to apply and picking the right method for your needs is important for a smooth experience in getting the First Home Owners Grant. Whether you go for the quicker way with a lender or broker, or do it yourself with RevenueSA, just remember to keep an eye on the deadline to make sure you get this helpful financial support.
Stamp Duty Relief
In South Australia, the First Home Owner Grant (FHOG) includes a stamp duty relief for first-time home buyers. Here’s a simple breakdown:
Stamp Duty Relief:
- For new homes worth less than $650,000 or vacant land under $400,000, you might not have to pay any stamp duty.
- If the new home is under $700,000 or vacant land is under $450,000, the stamp duty is reduced but not completely waived.
Who Can Get This Relief?
- You need to be an Australian citizen or permanent resident and at least 18 years old.
- This relief is for real people, not companies or trusts (except Special Disability Trusts).
- You or your spouse/partner shouldn’t have lived in an Australian home
for more than six months or received stamp duty relief before.
What Does It Cover?
- The relief is for contracts signed on or after June 15, 2023.
- It’s for buying new homes, off-the-plan apartments, house and land packages, or vacant land to live in.
- It doesn’t cover homes that are already built or properties bought just for investment.
Living There:
- You need to live in the new or built home for at least six months.
- This should start within 12 months of getting the house or land, or 36 months for vacant land.
Calculating Relief:
- The amount of relief depends on the property’s value.
- There’s a table that shows how much stamp duty you pay, the relief you get, and what you might still owe. For more details, you can check out the RevenueSA website.
Other Incentives you may be eligible for
Besides the First Home Owners Grant in South Australia, there are some great national programs that can help you buy your first home. Here’s a quick look at them:
- First Home Guarantee: This is part of a bigger plan called the Home Guarantee Scheme. It’s really cool because it lets you buy a home with just a 5% deposit. It’s not just for people buying their first home, but also for those who haven’t owned a home in Australia in the last 10 years. Read more: First home guarantee
- Regional First Home Buyer Guarantee: Also part of the Home Guarantee Scheme, this one’s specially for people buying homes in regional areas. Like the First Home Guarantee, you only need a 5% deposit.
- Family Home Guarantee: This one’s for single parents or guardians. You can buy a home with a super low deposit of just 2%. It’s okay if you don’t own a home right now or don’t plan to keep another property when you buy your new home.
- First Home Super Saver Scheme: This scheme helps you save for your home deposit in your superannuation (like a retirement fund). It’s got some tax benefits, and you can now save up to $50,000 for your deposit. Read more: First Home Super Saver Scheme
- Help to Buy Scheme: This scheme is about sharing the cost of buying a home. The government can pay up to 40% of the price for a new home or 30% for an existing one. This is to make homes more affordable, and there are 10,000 spots each year for people who qualify. Read more: Help to Buy Scheme
These programs are all about making it easier and more affordable to buy your first home in Australia. Each one has its own rules and perks, so they’re worth checking out!
First Home Buyers Grants for Other States
In Australia, each state provides unique grants and incentives to assist first-time homebuyers. This support varies across states, helping to make the process of buying your first home more feasible. Here’s a brief rundown of what’s available in each state:
New South Wales (NSW): The First Home Owner Grant (New Homes) offers $10,000 for purchasing or constructing new homes valued up to $600,000, or for homes where the combined value of the land and building is under $750,000.
Victoria (VIC): First-time buyers in Victoria can access a $10,000 grant for new homes valued up to $750,000. This amount increases to $20,000 for homes in regional Victoria.
Queensland (QLD): The Queensland First Home Owners’ Grant provides $15,000 for buying or building a new house, unit, or townhouse, as long as the value is below $750,000.
Western Australia (WA): In WA, first-time homebuyers are eligible for a $10,000 grant for new homes. Additionally, there are stamp duty concessions available.
Tasmania (TAS): Tasmania offers a $20,000 First Home Owner Grant for buying or building new homes, available until 30 June 2022.
Australian Capital Territory (ACT): The ACT has replaced its First Home Owner Grant with the Home Buyer Concession Scheme, which provides a complete stamp duty concession for eligible first-time buyers.
Northern Territory (NT): The NT provides a $10,000 First Home Owner Grant for new homes. There’s also the BuildBonus grant, offering up to $20,000 for first-time buyers who are building or purchasing a new home.
Each state’s grant comes with specific eligibility requirements and conditions. It’s crucial for first-time homebuyers to research and understand the details pertinent to their state. These grants play a significant role in reducing the initial costs of purchasing a home, thereby making homeownership more achievable.
Next Steps
If you’re looking to buy a home in South Australia and you’d like to explore your options with the SA First Home Buyers Grant, we’d love to help.
Give us a call on 1300 088 065 or contact us and we’ll walk you through your options.
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