First Home Owners Grant boost extended

[Andrew from Vista Financial]

Most have probably heard now but thought I would post this for those that hadn't.

 

First home buyer boost extended

 

Mr Swan also announced that the boosted first home buyer's grant will be extended for another six months.

People who enter into contracts on or before September 30 will still be eligible for a grant of $14,000 for an existing dwelling and $21,000 for a new home.

The more generous scheme will then been phased down, and end after December 31.

Between October 1 and December 31, the boost will be halved, meaning first home buyers will receive a total of $10,500 for established homes and $14,000 for new homes.

 

Andy

[Guest mayjess]

Can you apply for first home owners grant if its your 1 st home in OZ your buying,even if you have a house in the UK?

 

Mayjess

[Andrew from Vista Financial]

Hi Maryjess.

 

Yes you can. Taken from the application form, below.

 

Applicants and their spouse/domestic partner must:

not have previously owned or held a relevantinterest in a residential property anywhere in Australia prior to 1July 2000; and

not have occupied for a continuous period of at least six months, a residential property in which they acquired a relevant interest on or after 1July 2000 anywhere in Australia.

Regards

Andy

[kjc79]

Most have probably heard now but thought I would post this for those that hadn't.

 

First home buyer boost extended

 

Mr Swan also announced that the boosted first home buyer's grant will be extended for another six months.

People who enter into contracts on or before September 30 will still be eligible for a grant of $14,000 for an existing dwelling and $21,000 for a new home.

The more generous scheme will then been phased down, and end after December 31.

Between October 1 and December 31, the boost will be halved, meaning first home buyers will receive a total of $10,500 for established homes and $14,000 for new homes.

 

Andy

 

thankyou for this. i have had my fingers crossed for this just in case we are able to buy anything sooner rather than later so we have a slight glimmer now that we wont be renting forever

 

kathx

[Scousemouse]

Can you apply retrospectively, or if you are on a temporary visa??????

 

Just bought my first house, on a temp visa, with application pending for PR, so it would be a huge boost to the flagging funds if this is the case;)

[Guest motlyman]

I read an article the other day that house prices went up about the same as the grant! They reckoned if the grant was scrapped the house prices would go back down again! Funily enough about the same price as the grant:skeptical:

Any thoughts?

 

Colin

[Guest rich]

I'm really looking forward to getting our grant when we eventually move in and have lived there for the requisite amount of time. We might even be able to buy furniture!

 

Rich

[Guest kangomik]

Motly man, anything under 350 has far exceeded the grant price, you could be crushed by some of the stampedes for sub 300K homes due to people taking advantage of the grants.

If you have money midindie area maybe a good buy, you still get the grant, and its reported property has dropped 48 %.......... that is however only property sold in that area, the price is based on the average house price......... so probably only flats sold at 1 mill a piece!

 

Rich i wouldn't rush to buy a home just because of the grant.

[Guest motlyman]

What i meant was a house for example $300,000 would go up to $314,000 knowing the purchasers have an extra $14000 to spare? ie the price of the grant!

 

Colin

[Guest rich]

 

Rich i wouldn't rush to buy a home just because of the grant.

 

We didn't buy for the grant, more for the land! It's a bonus though i must admit:jiggy:

[Andrew from Vista Financial]

Hi Scousemouse

Yes you can apply for the grant as long you gain PR within 12 months of the date you signed the contract to buy or build if that is the case for some.

I think there is no doubt that the boosted grants have kept the market going and therefore supply demand has increased the prices. Will the prices drop once the boosted grants have stopped ??? Tough call, what’s to say that something else doesn’t come in to play that keeps the market moving.

My opinion is that they are definitely overpriced at the moment, when you see houses for $400,000 - $450,000 being marketed to first home buyers!

So what do you do if you are considering buying at the moment, me being one of these people?

Wait until prices drop? if so for how long do you wait and in the meantime continue to rent.

Will they definitely drop once the boost ends and will that be the full boost or the reduced boost (31 Dec 09).

Or as said will something else then come in to play. For us, Stacey has had enough of the wait and now wants her own home (against my instincts), so we will be looking to buy (she wins!) and whether the bonus was a bonus or not remains to be seen.

[Scousemouse]

Thanks, Andrew........................

Like you, the OH went against instinct; like Stacey, i want my own place.............its a girl thing!!

 

1 of my colleagues has had her place on the market for 5 months; 4 opens, and only just sold for a few 10k's lower than the asking price......................she told me that only a year ago, it would have sold within 2 months; so the market from a "natives" perspective, certainly is slower than the realtors would have you believe!

Or maybe buyers are just more particular.................i couldnt say.

 

I would say though, to anyone buying a house....................dont get brow beaten by the realtors; they NEED the sale, you are Wanting to buy..................the upper hand is yours, and even tho' i dislike strong arm tactics, you can always walk away............make sure the realtor knows it!

 

Good Luck everyone.

[Jez0207]

Hi. Great to hear its been extended. We fly to Adelaide on 11/6/09. Think I read somewhere that you have to have been resident in Oz for 6 months before you can apply for the Home owner grant. Do you know if this is right? Any info gratefully received. Thanks,

 

Lana

[Guest redfoxy]

Hi. Great to hear its been extended. We fly to Adelaide on 11/6/09. Think I read somewhere that you have to have been resident in Oz for 6 months before you can apply for the Home owner grant. Do you know if this is right? Any info gratefully received. Thanks,

 

Lana

 

 

Could Andrew also plase be good enouhg to clarify this ?

If you are on a provisional visa can you apply for first time buyers grant retrospectovely ? once you are permanant ??

[Guest Jim Scott]

My contribution to this thread:

 

1. How long you have been in the country has no bearing on your ability to claim the first home owners grant. I have done plenty of home loans for people who have virtually just got off the plane and obtained the grant for them - no problem whatsoever.

 

2. You can claim the grant retrospectively after getting permanent residency. Technically you must have gained PR within 12 months of completing your purchase (but you can appeal and might qualify - particularly if you are just over the 12 months).

 

3. Houses are worth what people are prepared to pay for them. The grant helps more people get into the market and thus, increases competition as there are more buyers so it surely helps the vendors in that respect. But.... a house "worth" $350,000 does not automatically fall in value by $7,000 if the grant were reduced by this amount. The "value" of the house is influenced, by lots of things, but buyer demand is the main factor and this is influenced by a) availability of credit b) population growth c) unemployment d) inflation e) number of other houses on the market in the same price range and location f) cost to rent etc etc. Just wanted to emphasise there is no conspiracy theory on these things.

[Jez0207]

Hi Jim. Thanks for the info. Do you know if you have to have a mortgage to claim the grant or can you still claim if you are paying in full for the house? Thanks,

Lana

[Andrew from Vista Financial]

Hi Lana

 

The grants can be obtained without having to have a mortgage.

 

You will just need to download the application form from the Revenue SA website.

 

Follow this link http://www.revenuesa.sa.gov.au/ it will provide you with all the infomation you need, the amounts available and other frequently asked questions.

 

Don't forget for houses under $450,000 the bonus grant is also available and is not affected by the main grants being reduced back to normal levels. All of this information is also available on the above website.

 

Regards

 

Andy