This Is How Much Money The Government Is Giving First-Home Buyers To Buy Or Build New
First-home buyers in every state of Australia already had cash incentives to build or buy a new home but last week the stakes got considerably higher.
When the federal government revealed its $25,000 HomeBuilder grant in a bid to boost the economy, throwing a lifeline to the home construction industry, it wasn’t designed to be used in isolation.
That $25,000 can be accessed on top of any existing grants or exemptions and, while these differ state by state, these grants could be a game-changer, says Damien Ross, general sales manager at QM Properties.
“For some first-home buyers, this will be their only opportunity to get into the market. Saving this kind of money takes most people years,” he said.
On Sunday came the news that first-home buyers in Western Australia could receive $55,000 in government assistance if they build a new home, thanks to a bonus $20,000 that the state government is going to tip in on top of HomeBuilder.
Those in Queensland and South Australia can claim $40,000, Northern Territorians can get up to a whopping $55,000 and Tasmanians $45,000.
In Victoria, first-home buyers can access at least $35,000, and up to $45,000 if they’re building a new home in a regional area.
Unfortunately, first-home buyers in the ACT and NSW — and particularly those in Sydney with its $1.16 million median house price — will get the least amount of help.
First-home buyers in the ACT can only get $25,000 but are exempt from paying stamp duty on all properties, while those in NSW can get up to $35,000.
“The grant will definitely provide some boost to the construction industry but there are a lot of restrictions and in some cases, they’ll mean it’s just too hard (to access),” said Domain economist Trent Wiltshire.
But for first-home buyers in those states with bigger grants available and moreover, lower property prices, the grants would make all the difference, Mr Ross said, noting that in some cases the funds would cover more than 10 percent of their deposit.
“We’re doing house-and-land packages in that sweet spot between $350,000 to $400,000 and $40,000 in grants covers more than 10 percent,” he said.
“This is the best opportunity I’ve seen since being in land development and will mean the difference between getting a house or not getting a house for a lot of young people.”
Victoria – up to $45,000
Victorians already had a $10,000 grant available for new first homes, and $20,000 for new homes built in regional areas, valued at $750,000 or less. They also don’t pay stamp duty on property under $600,000, with discounted stamp duty applying on property between $600,000 to $750,000.
That’s a saving of up to $31,070 for a home worth $600,000.
First-home buyers building or buying a property in regional Victoria can claim $45,000, while those buying closer into Melbourne will receive $35,000.