Tips for first home buyers in Victoria: What kind of financial aids are available?

By the resi financial blog team, 05 August 2014

Tips for first home buyers in Victoria: What kind of financial aids are available?

If you're considering Victorian property as your first home purchase, there are a number of things to consider before committing to any slice of real estate. However, getting in contact with a local mortgage lender and discussing the potential of securing a First Home Owners Grant (FHOG) from the state government could be a wise move to make heading into the future. In fact, Victoria offers a fantastic incentive for first home buyers to pursue their own property in the region. 

What is a FHOG?

Understandably, one of the more difficult hurdles that new buyers in Australia have these days is the increasing property prices and the challenge of saving up enough money for a deposit while still paying weekly rent and expenses. Couple this with trying to maintain a healthy lifestyle, it can all cause quite a headache for young home buyers. However, across the nation, a number of states offer an incentive to help first time buyers get into the market and onto their feet. 

This is known as the First Home Owners Grant and can be a life saver for buyers struggling to get their savings up. Created back in 2000, originally the fund offered $7,000 to buyers across the nation to help them purchase property. However, since then, many states have adopted and changed the grant to suit their own needs. 

What are the recent changes to Victoria's FHOG? 

There have been a number of revisions to the FHOG in Victoria, with the latest happening in July 2013. From that month onwards, the FHOG can no longer be utilised towards established properties in Victoria. Furthermore, the grant increased to $10,000 for brand new homes or for the construction of a new dwelling.

If you purchase a property valued under $600,000, you may also be eligible for a stamp duty concession. After introducing a 20 per cent discount in 2011, the the government aims to boost this to a 50 per cent reduction in stamp duty over the next few years. This means that the full 50 per cent discount will be available from 1 September 2014. 

What are the eligibility criteria? 

To apply for the grant, first you have to purchase a new home or begin the construction of your own. This is to help encourage the growth and development of housing supply across the nation, which is crucial to prepare the country for population rises over coming years. 

The value of the property you wish to buy or construct cannot exceed $750,000 - or $600,000 if you're hoping to secure the stamp duty discounts in the state as well. Furthermore, the property you purchase must be your main place of residence for a continuous period of 12 months, commencing within 12 months of finalising the purchase. 

If you're thinking about buying your first home in Victoria, then call us today on 136 126 and find out what mortgages are available for first time buyers from resi today.

Categories: Home Loans, Personal Finance