With the property market not experiencing the boom conditions that it was last year, this may be a good opportunity for first home buyers to consider taking the first step to owning their own home. At the same time the tightest rental market in over 25 years provides further incentive to make the move to home ownership as rents are likely to continue to increase.
If you are going to buy your first home then you should make sure you are aware of the financial assistance that is available.
First home buyers who meet certain criteria can be eligible for the $7,000 First Home Owners Grant. The grant is not means tested but there are several requirements to qualify, a key one being that you must occupy the property within 12 months of purchase and live in it as your principal place of residence for six months. There is no ceiling on the purchase price of the property.
The Victorian Government also offers a First Home Buyers Bonus scheme which can bring the level of financial assistance up to $15,000 for those who are eligible and whose home cost $500,000 or below.
If you are buying an existing home and qualify for the Bonus then you will be eligible for a grant of $3,000, bringing the total assistance to $10,000. However if you are building your first home in metropolitan Melbourne the bonus increases to $5,000, taking the total assistance to $12,000. For those building their first home in regional Victoria the bonus increases to $8,000 taking the total assistance to $15,000.
If you are a first home owner with a pensioner or concession card you may also be eligible for a concession on stamp duty.
Real estate agents and the State Revenue Office can provide more information on the grants.
