Mixed feelings of excitement and confusion can often be associated with the experience of owning your first home. If you’re wanting to build new, looking into the incentives and grants available can help save you money and get you into your new home faster.
As many of you may or may not already know, the West Australian government aims to help first home owners enter the market through funding the First Home Owner Grant (FHOG). This grant can be very useful, however there is generally a lack of knowledge surrounding it. To help you understand the grant and if your eligible to receive it, we have broken down all the essentials around it in simple terms.
Firstly, the most influential factor many don’t realise about the grant is, you must be building or purchasing a new home you plan to live in to qualify. The grant is not available to those purchasing an established home.
To break it down, a new home is classified as a residence that has never been lived in before, while an established property is a home that has been lived in.
How much money do you receive?
The grant is a one-off payment up to $10,000. Only one claim is available per purchase, so two people buying a home together will only receive one grant, not $20,000!
Smooth Start has many house and land packages on offer, which are eligible for the $10,000 first home buyers grant. Head to our house and land packages page to view the designs available.
First Home Owner Rate of duty (FHOR)
First home owners may also be eligible for further savings thanks to the First Home Owner Rate of duty (FHOR) which is a concession rate on stamp duty.
For those who don’t know, stamp duty is a tax on the transfer of a property from one owner to another, charged by each state. How much you’ll pay depends on the location, type of property, price and whether or not you’re a first home buyer.
To be eligible for the first home owners concessional rate of stamp duty, you must qualify for the FHOG or would have qualified had you purchased a new home. Concessional rate applies to both established and new properties.
First home owner concessional rate:
First home owner concessional rate: vacant land or house/land package