Western Australian first home buyers: What financial aid is available for this market?

By the resi financial blog team, 05 August 2014

Western Australian first home buyers: What financial aid is available for this market?

There are a number of reasons why you should consider purchasing property in Western Australia. However, if you're a first home buyer, you may find yourself grappling with the potential difficulty of saving up for a home loan deposit. However, the state has a First Home Owner Grant (FHOG) on offer that can be immensely useful for those interested in securing property in the region. 

What is a FHOG?

Back in 2000, the FHOG was introduced across the nation to offset the impact of GST on the cost of houses, which could be a difficult expense to deal with for first home buyers. The original fund amount was $7,000 and was introduced across all the states in Australia.

However, since then each state has taken the FHOG and made it their own. This means the amount is different between the varying regions of Australia, as are the circumstances and assessment criteria. For example, the Western Australian fund saw the most recent changes occur in September 2013. 

What were the changes to Western Australia's FHOG? 

From September 25 2013, the FHOG amount increased from $7,000 up to $10,000 for first home buyers purchasing a new home or pursuing the construction of their own new property. However, unlike many other states across Australia, there is also a $3,000 grant still available for the purchase of established properties. 

The emphasis on new homes is to help increase the overarching supply of properties within the state, especially with the impending population boom expected to hit the nation over the coming two decades. 

What are the eligibility criteria for the FHOG?

In order to successfully apply for the Western Australian FHOG, applicants must satisfy a number of criteria. For example, applicants must be an Australian citizen or permanent citizen at the time of the application, as well as be over the age of 18. Furthermore, you're unable to have owned property in Australia before and must make the property your continuous place of residence for at least six months, commencing within 12 months of purchasing the property or finishing construction. 

Unlike many other states, renovated properties are not eligible for the new home grant, which could be something to consider when heading into the Western Australian property market in search of your dream first home. 

Furthermore, there is a value cap on the properties that can be purchased with the help of the grant. The total value of purchasing or building a property with the help of the Western Australia FHOG cannot exceed $750,000. If the home is found north of the 26th parallel, this cap increases to $1,000,000. 

If you live in Western Australia and would love to own your first home then call us today on 136 126 and find out more about our range of home loans.

Categories: Home Loans, Personal Finance