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Eligibility Requirements
The grant is available to people buying or building their first home and who meet the following eligibility criteria:
- Each applicant is a natural person and not a company or trust
- At least one applicant is a permanent resident or Australian citizen
- Each applicant must be at least 18 years of age
- All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000
- All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months
- Each applicant has entered into a contract for the purchase of a home or signed a contract to build a home on or after 1 July 2000. In the case of an owner-builder, laying of the foundations commenced on or after 1 July 2000
- This is the first time an applicant and/or their spouse/de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory (unless subsequently repaid)
- At least one applicant will occupy the home as their principal place of residence for a continuous period of six months, commencing within 12 months of settlement or construction of the home.
Image: Flinders Street Station, Melbourne VIC
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Land Tax
Land tax is calculated on the total site value of all of your properties.
Unlike other taxes, such as capital gains tax, income tax or GST, land tax raises a liability on an unrealised gain.
The tax is owed on paper, regardless of whether or not you receive any income.
This makes land tax a financial burden if it is not factored into your investments.
NOTE: you are exempt from land tax if your land is used for rural purposes.
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First Home Buyers
The First Home Owner Grant Scheme (FHOGS) is an Australian Federal Government initiative in conjunction with both the New South Wales and Victorian Governments to help first home owners. The grant provides a $7000 benefit to eligible applicants.
Eligible first home owners can receive the grant regardless of their income, the area in which they are planning to buy or build, or the value of their first home. The grant is not means tested and no tax is payable on it.
Image: Sydney Harbour, NSW
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Why Property?
Australians have chosen property has their “route to wealth” for decades. It is not unusual to find people buying their own home to be their first ‘investment’. This can be followed by purchasing another property as investment, and perhaps even another. This is often before shares and other assets, despite the relative ease with which shares can no be transacted by the individual.
Property is, by no doubt, a great investment but your investment in property does in no way need to be your home. Indeed, buying a small apartment to rent out can be a good way to accumulate funds so that you can eventually buy your own place, in an area where you want to live. Or indeed, it may allow you to take advantage of investing in a booming area whilst choosing to rent in an area that is more desirable or convenient.
Sensible investments in property have many attractions. Property can generally be less volatile than shares and by and large tends to be regarded as a safe haven when other assets are declining in value.
Property has the potential to generate capital growth (an increase in the value of your asset) as well as ensure that you receive rental income. Then there’s the tax advantages associated with negative gearing and of course the benefits of positive gearing should never be under-estimated.
When buying property, having an understanding and keen awareness of the interest rate environment is vital. After all, interest rates affect the expected net return and the market for property should you ever decide to sell. You also should measure the return or ‘yield’ from property, and see how well is stands up against the return you may achieve should you invest in other assets.
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| First Home Owners Grant Factsheet (NSW) |
| First Home Owners Grant Application & Lodgement Form (NSW) |
| First Home Owners Grant Proof of Identity Form (NSW) |
| First Home Owners Grant Calculator (NSW) |
| Download Adobe Reader |
| First Home Owners Grant General Information |
| First Home Owners Grant Application & Lodgement Form (VIC) |
| State Revenue Office of Victoria |
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