First-time homebuyers are back
Landgate data showed an increase in sales of homes under $500,000 of 12 per cent since June 2016, which may be an indication that more first home buyers are getting their first set of keys.
I've been seeing an increase in applications for the first home buyer grant when applying for finance for established homes and house and land packages.
How you can make the most of WA's First Homebuyers Grants
In WA, the subsidy that helps first-time home buyers into the market is called the First Home Owners Grant and it was first available in 2000. It was brought in to offset the impact of the then-new Goods and Services Tax - better known as GST, but since then it has changed in the value offered and the type of home you can purchase with it, and it has become an important economic stimulus tool.
First home buyers in Western Australia who buy new build homes, or "substantially renovated" homes can apply for the $10,000 First Home Owners Grant.
If your budget is less than $400,000, then you may also qualify for other financial assistance, such as the Home Buyers Assistance Account, and get a sizeable amount of state government help to get into your first home.
WA first time buyers pay less transfer duty too
And don't forget there are stamp duty concessions for first-time buyers on all properties; full exemption applies for homes valued up to $430,000 and a sliding scale from between $430,001 and $530,000. For more information, see the West Australian Government – Department of Finance website.
But wait, there's more
And don't forget the WA Government's Home Buyers Assistance Account, which offers up to $2000 for purchasing expenses.
To qualify, your already built home must have cost you less than $400,000 to purchase and you must have bought it through a real estate agent. (Note: This does not apply to house and land packages, just ready to move into homes.)
Pro Buying Tip for First Timers
Did you know that you don't have to always have a house and land package to receive the $10,000 First Home Owners Grant?
Buying a newly built home that has not been occupied could mean you are eligible to receive the $10,000 grant. And that gives you the added bonus of moving in straight away, so you're not paying rent elsewhere while you wait for it to be built. This will save you plenty in interest repayments while you would normally be waiting for your house to be built.
Yes, it can happen
I recently helped a first homebuyer with finance for their home purchase. He was very pleased to have found a villa that was newly built and yet to be lived in for less than $400,000. And because he bought it through a real estate agent he also qualified for the $10k First Home Owner Grant, PLUS up to $2,000 Home Buyers Assistance, AND he didn't have to wait for the home to be built, he could move straight in.
Keep your eyes peeled for great deals. Happy Househunting!
Let me know how you get on.
If you'd like help with assessing your personal and financial situation, as well as comparing the loans in the market to see if you're truly getting the right deal for you, then call Bob Malpass now on 0431 862 136, email [email protected] or send us a message via our website for a quick response.
Thanks for reading,