17th December 2008: Grants boost helps first home owners

'Take advantage of government incentives,' agents urge buyers

You've decided to buy your first home. Doubtless there are many questions that spring to mind, so Fletchers has decided to try to answer some of them to smooth the way. The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000. Under the scheme, a one-off grant of up to $7,000 was payable to eligible first home owners.
However, the Federal Government has now announced a First Home Owner Boost, which supplements the Victorian Government funded First Home Owner Grant Scheme. As such, first home buyers who purchase established homes will now receive an additional $7,000, effectively doubling the grant to $14,000.
On top of that, subject to certain requirements, for established homes there is an additional $3,000 available in the form of a First Home Bonus. This means that eligible buyers of established homes could be entitled to a total of up to $17,000 in grants.

First home buyers who build a new home or purchase a newly constructed home will now receive an extra $14,000 to take their grant to $21,000. Subject to certain requirements, for those building a new home or purchasing a newly constructed home there is also another $5,000 available if they are purchasing in metropolitan Victoria. This additional sum is called a First Home Bonus. This means that eligible first home buyers who are building a new home or purchasing a newly constructed home in metropolitan Victoria could be entitled to a total of up to $26,000 in grants.
However, subject to certain requirements, those building a new home or purchasing a newly constructed home in Regional Victoria are entitled to the First Home Bonus of $5,000 plus another First Home Regional Bonus of $3,000.
This means that eligible first home buyers who are building a new home or purchasing a newly constructed home in Regional Victoria could be entitled to a total of up to $29,000 in grants.

The grants are administered by the State Revenue Office (SRO). Full details can be viewed on their website www.sro.vic.gov.au.

– Fletchers Property Newsletter November 2008 Edition