2023 INCENTIVES FOR FIRST HOME BUYERS | Professionals Platinum - Your real estate professionals in Kalgoorlie-Boulder

2023 INCENTIVES FOR FIRST HOME BUYERS

Kalgoorlie Buy | First Home Buyers | Latest News 20th September, 2023 No Comments

First-home buyer incentives and grants are designed to help young buyers start their property ownership journey. However, these initiatives are different in every state, they change regularly and there always seem to be discussions about ways to do things better. Because of this, it can be difficult to know what is available and what you qualify for.

First, it helps to be aware of the different incentives for home buyers, which generally include:

  • Paying less or no stamp duty on homes under a certain value
  • Receiving a grant to put towards buying or building a new home
  • Accessing government support to make up a deposit and avoid paying lenders mortgage insurance

Take a look at some of the latest updates around these initiatives for your state.

New South Wales

For a brief period, NSW first home buyers had the option of choosing between paying one-off stamp duty or ongoing land tax under the First Home Buyer Choice scheme. However, this has been rolled back as of the new financial year and replaced with the NSW First Home Buyers Assistance Scheme.

Under this initiative, first-home buyers who pay less than $800,000 will be exempt from paying stamp duty, and buyers who pay between $800,000 and $1 million will pay a reduced stamp duty amount.

Meanwhile, under the First Home Owner (New Home) Grant, home buyers who build or buy a newly built home may be eligible for a $10,000 grant to put towards the purchase price.

Victoria

Victoria’s offerings to help first-home buyers are as follows:

  • The Victorian Homebuyer Fund shared equity scheme
  • Stamp duty concessions for existing homes (depending on purchase price)
  • Stamp duty concession for off-the-plan purchases
  • A $10,000 First Home Owner Grant when you buy or build your first new home.

Currently, there are talks to scrap the First Home Owner Grant entirely in Victoria. Dr Michael Fotheringham, Managing Director of the Australian Housing and Urban Research Institute (AHURI), recently spoke out about the grant, saying it has been a leading cause of skyrocketing house prices. “The simple calculation here is if you give all first-home owners a grant of $10,000, the price of properties they are competing for goes up by $10,000,” he said.

In light of this, if you are getting ready to buy or build a brand new home, talk to your broker about how quickly you can take action.

Queensland

The First Home Owner Grant gives eligible first-time home buyers $15,000 towards buying or building a new home in Queensland.

Meanwhile, first-home buyers do not pay stamp duty on homes worth up to $450,000 under the First Home Owner Concession.

However, with forecasting that the vast majority of suburbs in Queensland will have a median house price well above $450,000 before the end of this decade, first-home buyers may be priced out of the majority of the state if they can’t afford stamp duty.

It remains to be seen whether Queensland will step in line with NSW and increase the threshold for stamp duty exemptions in the near future.

Western Australia

Calls are also being made to increase stamp duty exemption thresholds in WA, which currently start to kick in for properties valued at under $530,000.

There are also requests to reintroduce the $7,000 grant for first-home buyers buying established properties. As it stands, a First Home Owner Grant is available to put towards the purchase of a new home but not an existing one.

South Australia

In South Australia, the government scrapped stamp duty for first-home buyers buying new homes worth up to $650,000 as part of its state budget announcement.

The plan is intended to boost the number of first-home buyers and support the construction industry by encouraging the building of new homes.

Australian Capital Territory, Tasmania and Northern Territory

In the last three states and territories, advocates are echoing calls for increased stamp duty exemption thresholds.

You’ll find more information here:

National changes

The biggest change nationally that was introduced as of July 1st this year was an expansion of the First Home Buyers Guarantee, which enables an eligible home buyer to buy a home with as little as 5% deposit, without paying Lenders Mortgage Insurance.

This scheme has been expanded to include not only single people and married or de facto couples but also siblings, other family members and friends.

Individuals who have not owned a home for ten years may also be eligible for this initiative.

Before you buy

If you’re in the market for your first home, your real estate agent and mortgage broker can help you determine what you are eligible for in terms of grants and exemptions.

Are you getting ready to buy your first home? Get in touch with Professionals Platinum today.