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A first-time home buyer grant (or first home owners grant) is a
grant
Grant or Grants may refer to:
Places
*Grant County (disambiguation)
Australia
* Grant, Queensland, a locality in the Barcaldine Region, Queensland, Australia
United Kingdom
* Castle Grant
United States
* Grant, Alabama
* Grant, Inyo County, ...
specifically for/targeted at those buying their first home — perhaps a
starter home A starter home or starter house is a house that is usually the first which a person or family can afford to purchase, often using a combination of savings and mortgage financing. In the real estate industry the term commonly denotes small one- or tw ...
.
Like other grants, the
first-time buyer
A first-time buyer (FTB) is a term used in the British, Irish, Canada property markets, and in other countries, for a potential house buyer who has not previously owned a property.
A first-time buyer is usually desirable to a seller as they do no ...
does not hold an obligation to repay the grant. In this respect, it differs from a
loan
In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that ...
and does not incur debt or interest.
Grants can be given out by
foundations and governments.
Grants to individuals can be a cash subsidy (Lee and Reed, 2014
United States Department of Housing and Urban Development
The United States Department of Housing and Urban Development (HUD) is one of the executive departments of the U.S. federal government. It administers federal housing and urban development laws. It is headed by the Secretary of Housing and Ur ...
(HUD) also provides grants to first time home buyers. Funding for various state first time home buyer grants is nearly always available. In the fiscal year 2006, only two states exhausted their budgets for first time home buyer grants.
Australia
A similar program called the First Home Owners Grant (FHOG) was introduced in
Australia on 1 July 2000, where first time home buyers can receive a $7,000 once off payment to offset the cost of the
GST GST may refer to:
Taxes
* General sales tax
* Goods and Services Tax, the name for the value-added tax in several jurisdictions:
** Goods and services tax (Australia)
** Goods and Services Tax (Canada)
** Goods and Services Tax (Hong Kong)
**G ...
. While the program is offered nationwide, the scheme is funded by the
states and territories and subject to respective
legislation
Legislation is the process or result of enrolling, enacting, or promulgating laws by a legislature, parliament, or analogous governing body. Before an item of legislation becomes law it may be known as a bill, and may be broadly referred to ...
.
First Home Owners Boost
In October 2008, the
Australian government
The Australian Government, also known as the Commonwealth Government, is the national government of Australia, a federal parliamentary constitutional monarchy. Like other Westminster-style systems of government, the Australian Government ...
announced a boost to the scheme to alleviate the
Global Financial Crisis
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Entertainment
* ''Global'' (Paul van Dyk album), 2003
* ''Global'' (Bunji Garlin album), 2007
* ''Global'' (Humanoid album), 1989
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, in order to stimulate the housing industry and prop up the market. The stimulus consisted of $14000 available to first time purchasers buying or building a new home, and $7000 made available for those purchasing their first established home. The scheme continued from 14 October 2008 through to 30 September 2009.
Between 1 October 2009 and 31 December 2009 the grants were halved. Those purchasing or building new homes were eligible for $7000, while those purchasing established homes were eligible for a $3500 grant.
From 1 January 2010 onwards, the Commonwealth scheme ended. However, first home buyer assistance continued via the state funded First Home Owner Grant, worth $7,000 for both new and established properties.
During the budget announcement for 2011 to 2012, the QLD Government announced a further $10,000 QLD Building Boost for new homes, townhouses and units for contracts entered into from 1 August 2011 to 31 January 2012. The QLD Building Boost is eligible for first home buyers, owner occupiers and investors purchasing or building a new home. The total value of the new home must not exceed $600,000 to receive the grant. The aim by the QLD Government is to boost the construction industry that has seen lagging demand over the year.
The QLD State Government as of Tuesday 14 February decided to extend the Qld Building Boost for a further 3 months. The new end date for the Qld Building Boost is 30 April 2012.
The re-shaped First Home Owner Construction Grant kicked in on 12 September 2012 for properties valued up to $750,000 in Queensland.
The changes:$15,000 for first home buyers of new and off-the-plan properties applies from 12 September 2012 in Qld.
QLD $7000 grant for first home buyers of existing properties to be scrapped from 12 October 2012.
New QLD $15,000 grant applies to newly constructed homes, or properties bought off-the-plan
To be eligible, first home buyers must:
Make the property the principal place of residence in QLD within one year of taking ownership and live there for at least six months
Not sell the property within a year of moving in.
Buy or build at a property worth less than $750,000.
NSW state Government as part of its budget review for 2012 to 2013 increased the First Home Owners Grant in NSW to $15,000 but took away the stamp duty concession for established homes from first home buyers. The more than doubling of the First Home Owners Grant in NSW to $15,000 started from 1 July 2012 and will continue throughout 2013 with the First Home Owners Grant in NSW reducing to $10,000 in 2014. For non-first home buyers there is a grant of $5,000 available.
WA State Government has starte
first home owner grantas one-off to cheer first home buyers in WA. Grant i
$10,000and would be paid to buy or build the first home in WA.
Eligibility
The eligibility criteria for a first home owners grant in Australia is as follows:
* The applicant must be buying their first home or building their first home
* Each applicant must be applying as a person and not a company or trust
* At least one of the applicants should be a Permanent Resident (New Zealand citizens get a PR automatically) or Australian citizen
* Each applicant must at least be 18 years old
* At least one of the applicants must use the property as their primary place of residence for 6 continuous months within 12 months of the settlement of the purchase or construction of the home
* All applicants and their spouses or partners should not have owned a residential property in Australia before 1 July 2000
* All applicants and their spouses or partners should not have owned a residential property in Australia after 1 July 2000, and occupied it for 6 continuous months
* Each applicant must have entered the purchase contract to buy the home or signed the construction contract after 1 July 2000
* The total value of the home is not more than the grant amount
Mos
first home builderswill be able to assist in the first home grant application process.
See also
*
Home ownership in Australia
Home ownership in Australia is considered a key cultural icon, and part of the Australian tradition known as the Great Australian Dream of "owning a detached house on a fenced block of land."Winter, Ian and Wendy StoneSocial Polarisation and ...
*
Australian property bubble
The Australian property bubble is the economic theory that the Australian property market has become or is becoming significantly overpriced and due for a significant downturn (also called a correction or collapse). Since the early 2010s, variou ...
References
External links
First Home Owner GrantUSDA Home LoanThe Texas Mortgage Pros
{{DEFAULTSORT:First Time Home Buyer
Residential real estate
Affordable housing
Grants (money)
Housing in Australia