1st time home buyers grant

[Kenneth Wragg]

Hello:

can anyone advise on the 1St Time Homeowners Grant,  is it a simple process, are there any drawbacks, or it it better to purchase an established property if so what is the best place to look for established properties, the websites are for agents with New Properties and do not show properties that are for sale that are established, we would like to live in Mount Barker Adelaide.

Thank you.

K.G.W.

[Marisawright]

Realestate.com.au

[AJ]

You need to be PR or a citizen

[Kenneth Wragg]

I am aware of that !!

[Bobj]

G'day mate, have a squiz at Domain.

https://www.domain.com.au/sale/mount-barker-sa-5251/?ssubs=1&gclid=CjwKCAjwvNXeBRAjEiwAjqYhFvPbizAvn9mgzPb_bPUdowozkO2zEIITJXGCjHcUPe2BZihvZV9KYBoCpjUQAvD_BwE

Cheers, Bobj.

[Kenneth Wragg]

Bobj:

Again Thank you, will do.

Regards.

K.G.W.

[Guest Carol from Vista Financial]

12 hours ago, Kenneth Wragg said:

Hello:

can anyone advise on the 1St Time Homeowners Grant,  is it a simple process, are there any drawbacks, or it it better to purchase an established property if so what is the best place to look for established properties, the websites are for agents with New Properties and do not show properties that are for sale that are established, we would like to live in Mount Barker Adelaide.

Thank you.

K.G.W.

Hi @Kenneth Wragg

In South Australia the First Home Owners Grant (FHOG) is only available if you build, or purchase a recently built new property - so you won't receive it if you purchase an established dwelling.

FHOG is only available up to a maximum property market value of $575k. Full eligibility criteria can be found here. You can also take a quick eligibility test here to help guide you.

As for the process itself it is relatively straight forward. You can apply yourself through RevenueSA, but most people do so through an approved agent, which is normally your bank if you are seeking finance. Your broker/banker should be able to guide you somewhat through this process and have the relevant forms available if they are an approved agent. You can read more about the application process here. You apply early once you know what you are building/buying to get the wheels in motion - it is government after all. Revenue SA controls the application and funding process, not the bank.

Also important to note when the funds are distributed. If you are building this is normally after the first progress draw on a build is paid (i.e. once they pour the slab) and not before, so keep this in mind for cash flow purposes.

In South Australia if you plan to buy an off the plan apartment there may also be stamp duty concessions available subject to criteria for market values of $500k or less. Off the plan purchases can be risky though, so do take care.

As has been noted above Realestate.com.au and Domain.com.au are the most common places that properties for sale are listed, you can narrow down by suburb specifically to Mount Barker. You can also search for land and build packages on there too. There are other websites but these are the most popular.

If you need anymore guidance I am happy to help.

Cheers
Carol

[Kenneth Wragg]

Carol:

Thank you for you detailed email it was very much appreciated. I noted that you have said that the Grant is payable on a built property, can we assume it is a new property that has been built but no one has lived in it.

Again than you, we have took it all onboard.

K.G.W

[Marisawright]

12 hours ago, Kenneth Wragg said:

Carol:

Thank you for you detailed email it was very much appreciated. I noted that you have said that the Grant is payable on a built property, can we assume it is a new property that has been built but no one has lived in it.

Again than you, we have took it all onboard.

K.G.W

As you won’t qualify to receive the grant yourself. I assume you will be giving the money to your son/daughter to buy the property in their name. 

Just check the tax implications of gifting such a large sum of money.

Also check that the First Home Buyers grant doesn’t have any requirement that the buyer has to live in the property.

[Kenneth Wragg]

Marisa:

Again Thank you for your advice, it is taken on board. You are right about the tax implication if my daughter and her family purchase the property. Am I right to think once we have a Bridging Visa we can then build and qualify for the Grant. I have been on various websites and mortgages are available once you have a Bridging Visa, thankfully we don’t need a mortgage, but obviously don’t want to miss out on any incentives.

Regards.

K.G.Wragg.

[Marisawright]

14 minutes ago, Kenneth Wragg said:

Marisa:

Again Thank you for your advice, it is taken on board. You are right about the tax implication if my daughter and her family purchase the property. Am I right to think once we have a Bridging Visa we can then build and qualify for the Grant. I have been on various websites and mortgages are available once you have a Bridging Visa, thankfully we don’t need a mortgage, but obviously don’t want to miss out on any incentives.

Regards.

K.G.Wragg.

No, because you will still be classed as a non-resident while on the bridging visa. Therefore you get none of the rights or privileges of a permanent resident.

 

It’s an interesting anomaly that you can buy property.

I know it sounds weird as you will be resident in the ordinary meaning of the word,and you intend to stay permanently. However in the eyes of the law. you are just a temporary visitor

Edited October 29, 2018 by Marisawright

[Kenneth Wragg]

Marisa.

Why are mortgages given to people on Bridging Visas?

KGW.

[Marisawright]

41 minutes ago, Kenneth Wragg said:

Marisa.

Why are mortgages given to people on Bridging Visas?

KGW.

That’s up to the financial institution not the government

[Marisawright]

52 minutes ago, Marisawright said:

 

Double posted

Edited October 29, 2018 by Marisawright

[Guest Carol from Vista Financial]

15 hours ago, Kenneth Wragg said:

I noted that you have said that the Grant is payable on a built property, can we assume it is a new property that has been built but no one has lived in it.

Hi again KGW

Yes a newly build property not lived in is fine.

2 hours ago, Marisawright said:

 I assume you will be giving the money to your son/daughter to buy the property in their name. 

Just check the tax implications of gifting such a large sum of money.

Also check that the First Home Buyers grant doesn’t have any requirement that the buyer has to live in the property.

Sorry, I must have missed this part of the plan to gift the funds and purchase in their name.

This will be in issue unfortunately, as there is a requirement for the FHOG for any purchasers (i.e. each applicant) to live in the property for at least six continuous months within 12 months of completion. Which would mean if they both purchased on your behalf both of them would have to live there for six months as above to meet this requirement.

You can read the full details on the Revenue SA website in the FAQ's and here.

[Marisawright]

2 hours ago, Carol from Vista Financial said:

Hi again KGW

Yes a newly build property not lived in is fine.

Sorry, I must have missed this part of the plan to gift the funds and purchase in their name.

Sorry, that was just a guess on my part because the OP will be on a 30 year bridging visa for the non contributory parents visa

[Guest Carol from Vista Financial]

3 minutes ago, Marisawright said:

Sorry, that was just a guess on my part because the OP will be on a 30 year bridging visa for the non contributory parents visa

Hey @Marisawright all good, I did go scrolling madly to see if I had missed something! 

A fair guess seeing as you knew about the OP's visa, I didn't know the full picture.

If it is the case then glad it came to light

[Marisawright]

13 minutes ago, Carol from Vista Financial said:

Hey @Marisawright all good, I did go scrolling madly to see if I had missed something! 

A fair guess seeing as you knew about the OP's visa, I didn't know the full picture.

If it is the case then glad it came to light

I think I am right in thinking they can’t get the first home buyer grant while they’re on the bridging visa?

[Guest Carol from Vista Financial]

33 minutes ago, Marisawright said:

I think I am right in thinking they can’t get the first home buyer grant while they’re on the bridging visa?

Correct, they need to have already been granted PR or Citizenship at the time of application to be eligible for the FHOG.

According to the SA FHOG application form the fine print notes the residency requirement as:

"A person who holds a permanent residency visa under Section 30 of the Migration Act 1958 (Cwlth) or a New Zealand citizen who is the holder of a special category visa under Section 32 of the Migration Act 1958 (Cwlth)."

Some banks may lend (with LVR restrictions) to temporary residents, but this is a seperate matter. They will still not be eligible for the FHOG on a bridging visa.

Two seperate things as you have already noted above - the criteria for the mortgage (set by the lender) and the critieria for FHOG (set by Revenue SA i.e. govt).

7 hours ago, Kenneth Wragg said:

Why are mortgages given to people on Bridging Visas?

Because the lender has decided this is within their risk appetite. Some are happy to lend, but say only to 70-80% of the property purchase, as they have deemed this an acceptable risk for them to still do business.

[Kenneth Wragg]

Marisa:

Thank you for your emails, points have been noted.

while we apply for our aged 804 Visa we will be on a BV because the waiting list is 30 years!! and I have been told we will be able to purchase one property for our main residence but cannot purchase 10 or buy for investment.

Regards.

K.G.W.

[Marisawright]

1 hour ago, Kenneth Wragg said:

Marisa:

Thank you for your emails, points have been noted.

while we apply for our aged 804 Visa we will be on a BV because the waiting list is 30 years!! and I have been told we will be able to purchase one property for our main residence but cannot purchase 10 or buy for investment.

Regards.

K.G.W.

I’m aware of that.