Buying your first home is an incredibly exciting and daunting step in life.
The Queensland first home buyers grant is a great incentive to help purchase your first home, however the process can be daunting for some. Understanding how to access all the resources available to you will help you have the best possible experience buying your first home.
The scheme differs for each state, so we’ve developed a no-fuss run down of all you need to know to get the most out of the grant in Queensland. From the criteria you’ll need to meet, evaluating your finances and loan considerations, to the Brisbane suburbs we recommend for first home buyers.
The updated First Home Buyers Grant scheme was implemented on July 1st, 2000, as a means of helping Queenslanders buy their first home sooner. The grant is a one-off payment, initiated by the federal government to assist first home buyers with getting a foot in the door of the property market.
As of July 1st, 2018, the amount available in Queensland is $15,000. This grant is only applicable to you if you’re building or buying a brand-new home or apartment.
There’s considerable fine print when it comes to qualifying for the grant, so it’s worth knowing where you stand.
- You must be at least 18 years of age
- You must be an Australian citizen or permanent resident, or applying with someone who is an Australian citizen or permanent resident
- You or your spouse must not have previously owned property in Australia that you lived in
- You must be buying or building a brand-new home
- The value of the home, including the land, must be less than $750,000
- You must move into the new home as your principal place of residence within one year of the completed transaction and live there continuously for six months.
If you’re building, the grant is paid to you as soon as construction has commenced while if you’re buying a brand-new home, the grant is paid at settlement. And yes, in most cases, you can use the grant as part of your deposit!
However, before you consider the first home buyers grant, we recommend seriously evaluating your finances and budget to get a good idea of where you would stand without the grant. Think of the grant as a buffer to buy your home sooner.
The amount you can borrow from the bank depends on a multitude of factors to determine how much they’re prepared to let you borrow.
The obvious first consideration is the size of your deposit - saving your money, though no easy task, is critical if you wish to increase the amount that banks will let you borrow.
A higher income will also increase your favour, and a good credit score is invaluable. It’s important to remember that your deposit, income and credit score need to be consistent. For example, you may have an impressive income and great credit score, but if your deposit is on the smaller side, you will face limitations.
We spoke with Place New Farm managing director and principal agent, Judy Goodger, for her advice on getting the most out of the Queensland first home buyers grant.
“There’s several central Brisbane suburbs that are ideal for getting the most out of the Queensland first home buyers grant, home to both newly built apartments and townhouses. These include Newstead, Bowen Hills, Hamilton, and West End.
If you’re after larger plot sizes and greener pastures, look to the suburbs of Kenmore, Mitchelton, Tingalpa, and Forest Lake”.
The Queensland first home owners grant is a great opportunity to get your foot in the door of the sunshine state property market. If you’re interested in learning more about which central Brisbane suburbs you can buy property with the grant, we recommend looking at Bowen Hills.
Sources:
https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant