While applications for the Federal Government’s HomeBuilder initiative may have closed on 14 April 2021, there are still a number of different financial incentives on offer for first home buyers across Queensland.
This creates a real opportunity for savvy developers to deliver an affordable product which is attractive to incoming homeowners who can take advantage of the below incentives, but is also eligible for the various development incentives on offer in the different Local Government Areas.
Queensland First Homer Owners’ Grant
In addition to the above incentives, the Queensland Government is also offering the following grants and stamp duty concessions to first home buyers buying their primary place of residence:
- A cash grant of $15,000 towards buying or building a new house, unit or townhouse provided it is valued equal to or less than $750,000.
- A concession on having to pay any stamp duty on any property valued at $500,000 or less (equating to a savings of up to $8,750).
In addition to the above, many local governments are offering first home buyers a rebate on paying their first 12 months of rates. In particular, Townsville City Council are offering a rebate of the first $1,000 of general rates levied on a property (valued up to $450,000) until 31 December 2022.
First Home Super Saver Scheme
The FHSSS was established by the Federal Government on 1 July 2017. The Scheme enables prospective home owners to voluntarily contribute up to $15,000 per year into their superannuation to save for their first home.
Individuals can currently withdraw up to $30,000 in paid voluntary contributions and associated earnings, to use as a deposit for the purchase of their first home while, couples can withdraw up to a maximum of $60,000. This is set to increase though on 1 July 2022, when individuals can withdraw up to $50,000 and couples can withdraw up to $100,000.
An important caveat on this Scheme, is that any first homebuyer may first apply to the ATO to withdraw their money before they can sign a contract. A homeowner then has 12 months to find an appropriate property and use the money. If a contract is signed before the ATO issues a determination on the eligible contributions, the money will not be released and will be considered a standard voluntary contribution you cannot access until retirement (please learn from our past mistake!).
Family Home Guarantee
As of 1 July 2021, single parents can apply to take advantage of the Federal Government’s Family Home Guarantee. This new initiative aims to support eligible single parents with at least 1 dependent child in purchasing a family home (irrespective of it is their first home or not and irrespective of it is new or existing).
Under the Scheme, part of the eligible home loan from a Participating Lender, is guaranteed by the Federal Government’s National Housing Finance and Investment Corporation (NHFIC). NHFIC are set to make 10,000 guarantees available over four (4) financial years to 30 June 2025.
To be eligible:
- the buyer must be single i.e. no spouse and / or de facto partner
- the buyer must have at least 1 dependent child
- the buyer must have a maximum taxable income of $125,000 per year (excluding child support payments)
- the buyer must have a minimum 2% of the value of the property available as a deposit (but less than 20%);
- the buyer must not currently own a home; and
- the property must be valued equal to or less than $600,000 where within Greater Brisbane or a Qld regional centre or $450,000 in the rest of the State.
Family Home Loan Deposit Scheme
In addition to the Family Home Guarantee, NHFIC is also seeking to support 10,000 eligible first home buyers purchase their first home. Available until 30 June 2022, eligible first home buyers with a minimum of 5% deposit will be able to apply for NHFIC to guarantee up to 15% of the value of the property purchased, to avoid them having to pay Lender’s Mortgage Insurance. The guarantee is not a cash payment or a deposit towards the home and can be used on any new or existing property which does not exceed the relevant price cap for the area it is located in.
To be eligible:
- applicants must be first home buyers who have not previously owned, or had an interest in, a property in Australia
- single applicants must have a maximum taxable income of $125,000 per year
- couple applicants (married or de-facto relationships) must have a maximum taxable income of $200,000 per year
- applicants must have a minimum 5% of the value of the property saved as a deposit (but less than 20%);
- the property must be valued equal to or less than $600,000 where within Greater Brisbane or a Qld regional centre or $450,000 in the rest of the State.
