As of October 2008, first home buyers will be eligible for grants of up to $21,000 designed to stimulate housing activity.
The payment under the first home buyers scheme has been doubled from $7,000 to $14,000 and first home buyers who buy newly constructed home receive an extra $7,000, taking their total grant to $21,000.
The scheme will be time limited. This boost will now continue until the end of September
2009. Then, from 1 October 2009 through to 31 December 2009 the boost will be
phased out.
This means that up to 30 September 2009 the full grants stay in place. Then, between October 2009 and December 2009 the
grant of $21,000 is reduced to $14,000. As of 31 December 2009 the boost is stopped altogether.
The scheme is administered by the Office of State Revenue within the Department of Treasury and Finance COMMON Q & As
Source: Housing Industry Association (HIA)
Q: When does the revised FHOG start?
A: It will operate between 14 October 2008 and 30 September 2009.
Q: What is the definition of new build? Is it something that has never been lived in before?
A: YES, the home can not have been occupied.
Q: What if I buy an off the plan home? Is this considered a newly constructed home?
A: YES, if the home has never been sold before nor previously occupied by any person.
Q: Do townhouses/units/apartments qualify?
A: YES. The home must be a fixed building suitable for use as a place of residence. This includes a house, flat, unit, townhouse or manufactured homes. Houseboats and caravans are not eligible.
Q: What are the time limits for the construction of a new home?
A: The contract must be signed by 14 October 2008 and 30 September 2009. The building must commence (laying of foundation) within 24 weeks of contract date. Building must be completed within 18 months of commencement of building.
Q: What if the home is not constructed within 18 months? Is there an appeals process?
A: In most circumstances 18 months is a generous amount of time to complete construction. If it is not completed within 18 months then the applicant would have to provide reasons why and ask for the Commissioner of State Revenue to exercise his discretion to allow.
Q: What if I have owned vacant land? Will this mean I can't receive the revised FHOG?
A: NO, vacant land is not regarded as residential property for the first home owners grant.
The Real Estate Institute of WA has compiled a Fact Sheet about the changes to the First Home Owner Grant. Click here to view.
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