Buying a first home is a difficult task for the majority of Australian's of the younger generation. In fact a Bank West report has revealed that it if a couple earning at the nations median income both saved 20 per cent of their pay, it would still take them almost four years to save a 20 per cent deposit on a home at Adelaide's median value.
Local governments have thankfully acknowledged this difficulty, easing the pressure on first home buyers by offering a handy grant to go towards a deposit. Before you set your saving goals it's essential that you know if you're eligible, and if so how much you will receive as this will affect your planning. It may mean you're moving in quicker than you expected.
With this in mind let's have a closer look at the First Home Buyers Grant to see if you're eligible.
Eligibility rules
Several states require that you purchase a new home to be eligible for a grant, the majority of which will mainly be apartments and units. Additionally, you wont be purchasing a mansion with your grant, as most states require that the property you purchase be below a certain price limit. this varies from $500,000 to $750,000.
Applicants have to be Australian citizens, and you have to live in the property you buy for six months after purchase. To be sure that you're eligible it's best to check the details of the grant, on your state governments website, or by getting in touch with Advantage Finance.
You should be eligible for at least $10,000, regardless of where in the country you're buying.
So your eligible, but for how much?
If you've ticked all the boxes you should be eligible for at least $10,000 regardless of where in the country you're buying. This already considerable sum doubles if you're buying in Victoria or Tasmania, where the grant is a hefty $20,000. This amount is almost a third of a 20 per cent deposit on a home at the median dwelling price in Hobart, according to CoreLogic RP Data.
Lastly if you're purchasing in the Northern Territory you'll be entitled to a massive sum of $25,000, a figure that will provide a mighty boost onto the first rung of the property ladder.
Wherever you are in the country, your strategy should be the same. After discovering how much your entitled to under the grant, its time to use a savings calculator to help map out the road to home ownership. Do so an you'll be well on your way to being a proud owner of your own little piece of Australia.
