FHOG $5K ceasing, but $15K continuing

Over the past month or so there has been some publicity about the First Home Owners Grant (FHOG) of $5,000 ceasing for the purchase of an existing property on 30.6.14. However, there has been hardly any mention that the $15,000 FHOG for the purchase or construction of a brand new house will continue after 30.6.14.

This is good news for first home buyers wanting to buy a brand new home or build their first home. It really takes the pressure off having to get everything arranged by 30.6.14. As we know, when you are under pressure bad decisions can be made and when investing so much into your new home you do not want to make mistakes, especially when they can be so costly.

No end date to the $15,000 FHOG for new homes has been announced so take the time to fully research your options, including the area you wish to build in, the style of houses that can be built in the area and the cost of construction. Remember, the building contract price is one thing but you need to work out what is not included in the contract to determine the full cost of building your home.

For the purposes of the grant a new home is defined as a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home.

Note: To be eligible for $5,000 FHOG when buying an existing property you must have a contract of sale signed and dated on or before 30.6.14. Settlement can take place after that date.

If you require more information about FHOG please contact me on 0416 802 123 or email scott.shanks@loanmarket.com.au or click here to be directed to Revenue SA’s FHOG website.