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First Home Owner Boost
Monday, October 20, 2008
The First Home Owners Boost (FHOB), doubles the existing First Home Owners Grant on existing homes that have been lived in.
It also triples the existing grant for newly built homes. This includes existing, newly built homes that have not been previously sold or lived in.
These are time limited measures.
BUYING A NEWLY BUILT HOME
First home buyers who sign contracts to purchase a newly built home between 14 October 2008 and 30 June 2009 are eligible for a grant of $21,000.
For people buying newly built homes, this means entering into a contract to buy or build a house. The house may be built on land that has already been purchased.
The increased amounts for newly built houses will be payable where:
• Building commences within 24 weeks of signing the contract
• Building is complete within 18 months of the commencement of the building.
A newly built home is a home that has never been sold before, nor occupied by any person. This includes:
• Contracts to build a home on land already purchased
• Homes bought off the plan
• Purchase of homes that have been built but never sold or occupied
Eligibility criteria remain the same as for the current First Home Owners Grant. The requirements are:
• Buyer must be 18 years or older
• Buyer must be an Australian citizen or permanent resident
• The applicant (or his/her spouse) must not have received an earlier grant
• The applicant (or his/her spouse) must not have previously owned their own home
• The buyer/s must live in the home for at least a continuous period of 6 months, within 12 months after completion of the eligible transaction.
The FHOB will be administered by State and Territory governments, just like the previous First Home Owners Grant. They will have systems in place to process applications under the new rules as soon as possible. Relevant departments in State and Territory Governments will make the final decisions on individual applications.
For a newly established house, the FHOB (and FHOG), is paid in a lump sum to the first home buyer upon completion, that is, when a certificate of occupancy is provided.
BUYING AN EXISTING HOME
First homes buyers who sign contracts to purchase an existing home between 14 October 2008 and 30 June 2009 will now be eligible for a one off payment of $14,000.
For people buying an existing home, this means entering into a contract to buy a home – usually known as the ‘exchange of contracts.’
First home buyers who exchanged contracts prior to 14 October 2008 will not receive the additional amount, even if they have not yet settled. They will still be able to receive the existing $7,000 First Home Owners Grant.
Eligibility criteria remain the same as listed above for those who buy a new dwelling.
This scheme will also be administered by the States and Territories which will make final decisions on individual applications.
For an established house, the FHOB (and FHOG), is paid in a lump sum upon settlement
- REIWA