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First Home Owners Grant |
One of the most ambitious and yet
highly effective programs of the Australian government is the First
Home Owners Grant (FHOG). The First Home Owners Grant came into
being after the Goods and Services Tax (GST) had a significant effect
on people who are trying to save up for or buy a home. The Australian
government urged the states and territories to extend assistance
to first time homeowners so that they can own their own home.
The assistance comes in the form of a grant. The one-time payment
can reach up to AU$7,000 and will be paid by the state or territories
government to first time homeowners who are deemed eligible to enter
the program. The grant is expected to be used in helping these people
purchase a home or make repairs on their first home purchase.
In order to qualify for the First Home Owners Grant, the prospective
homeowners must be able to meet certain criteria. These are:
• The applicant and his/her partner should not have received
money from the First Homeowner Grant Act 2000 in any of Australia’s
territories or states.
• The applicant and his or her partner should not have owned
their own residential property in any territory or state of Australia
either as individuals, partners or with other people before the
first of July 2000.
• The applicant must be a natural person (meaning he or she
is not a company), an Australian citizen and must be a permanent
resident. (The exact parameters of this requirement would vary for
each State or Territory).
• An additional criteria was added from January 1, 2004. In
this new criteria at least one applicant must already be using the
house as the primary residence for a period of at least six continuous
months. This period will start within 12 months of settlement, completion
or construction.
Aside from the eligibility, applicants must also be able to pass
what is called as the transaction eligibility criteria in order
to qualify for the grant. The following criteria mainly involves
the paperwork and contractual obligations that must already be ongoing
when the applicant applies for the First Home Owners Grant. These
criteria will vary for each State and Territory.
The Australian government has also specified which exactly what
types of dwellings can be considered for the First Home Owners Grant.
Based on the specifications released by the government, the residence
should be a “fixed dwelling” that has passed the planning
standards of the State or Territory. The dwelling can either be
a house, flat, unit, townhouse or apartment.
The best thing about the First Home Owners Grant is that this is
a “required” application. Any person who is considered
a homeowner – either purchasing or building a home –
is automatically considered an applicant and will be asked to submit
an application as well supporting documentation.
The First Home Owner Grant is a manifestation of the Australian
Government’s concern for the welfare of its citizens and an
acknowledgement of the people’s desire to be able to purchase
or build their own house.
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