First Home Owners Grant – Am I Eligible?

First Home Owners Grant (FHOG) is often a confusing topic. How much are you eligible for if anything. The First Home Owners Grant was introduced on 1 July 2000 with GST as an incentive to help first home buyers into the property market. Over the years it has evolved and currently the federal government contributes $7,000 to the grant and each individual state has their own added incentives. Some states have a first home owner’s scheme and others stamp duty reductions.

First Home Owners Grant - Myths

  1. You must live in a your home for 12 months. Each state has separate rules and most state that you must move in within 12 months however only have to live there for 6 months or to simply establish it as a home for a reasonable time period
  2. If you purchase an investment property you are not eligible. In fact you can purchase 10 investment properties and then on your 11th decide to move in and claim the grant. It all depends on timing and if you had never held property pre 1 July 2000 you should be OK
  3. You can claim the grant even if you don’t live in the home. Many people have been caught out trying to beat the system but there are many checks the government have in place so don’t cheat the system that helps you.
  4. That you can buy a home in joint names and claim the grant twice. You can only claim the FHOG once per property and if joint names claim the grant they only get 50% each effectively and cannot claim the FHOG again.
  5. That you can use a company of trust to claim the First Home Owners Grant. Only individuals or natural entities are entitled to the FHOG

The first home owners grant is a great way to get started however it will not be enough to purchase a home as in most cases it will not even cover stamp duty. Therefore it is essential that you can have a deposit saved in addition to the grant to avoid costly start up fees.