First Home Owners Grant increased - Revenue SA

[blueoval]

The Revenue SA website today has stated that the FHOG will increase here in SA.

15/10/2012...Increased Government Assistance for New Home Buyers

Today, 15 October 2012, the Government announced that they have retargeted their home buyer assistance by:

increasing the First Home Owner Grant (FHOG) for new homes from $7000 to $15 000 (ongoing) for contracts entered into on or after 15 October 2012;
reducing the FHOG for established homes from $7000 to $5000 for eligible contracts entered into between the date the necessary amending legislation comes into force and 30 June 2014. The FHOG will be abolished for established homes from 1 July 2014; and
replacing the $8000 First Home Bonus Grant with a Housing Construction Grant (HCG) of $8500 for all new home construction where contracts are entered into between 15 October 2012 and 30 June 2013 inclusive. The HCG will be available for properties valued up to $400 000, phasing out for properties valued up to $450 000.
First Home Owner Grant

From 15 October 2012, new home purchasers are entitled to a $15 000 FHOG. This measure is ongoing.

Purchasers of established homes will continue to be entitled to a $7000 FHOG until the necessary amending legislation comes into force.

From the date the amending legislation comes into force and 30 June 2014 purchasers of established homes will be entitled to a $5000 FHOG.

From 1 July 2014 no FHOG will be available to purchasers of established homes.

The FHOG property value cap of $575 000 will continue to apply for all FHOG applicants.

Other than the changes above, no other criteria will change.

First Home Bonus Grant

The $8000 First Home Bonus Grant is abolished for all contracts entered into on or after 15 October 2012.

The First Home Bonus Grant will still be available for contracts entered into between 1 July 2012 and 14 October 2012.

Housing Construction Grant

The $8500 HCG is available for new home buyers and owner builders, and, including investors, who are purchasing or building a new home valued up to $400 000, phasing out for properties valued up to $450 000.

The HCG applies to contracts that are entered into between 15 October 2012 and 30 June 2013 and to owner builders where construction of the new home commences on or after 15 October 2012.

The HCG will be available to natural persons, companies and trusts and there is no limit on the number of grants available, regardless of whether a person purchases or builds a new home alone or together with others.

Previous recipients of FHOG grants are also entitled to the HCG on purchasing a new home. First home buyers of a new home will receive both the $15 000 FHOG and the $8500 HCG provided all eligibility criteria are met.

New Home

New Home means a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home. There is no change to this definition.

Applications

Initially all applications for the HCG (including by first home buyers) will need to be made via RevenueSA. An application form will be available as soon as possible.

Applications for FHOG can still be made via Financial Institutions and it is planned that systems changes to reflect the new arrangements in FHOG online will be in place in the near future.

Should you have any questions please contact RevenueSA on 08 8226 3750.

RevenueSA will update its Internet pages, publications and forms to reflect the revised arrangements as soon as possible.

http://www.revenuesa.sa.gov.au/archivednews.html#FHOG

Surely this has got to help the struggling tradies here in SA and help those looking to get their foot in the door for the housing market.

Note that FHO looking to BUILD will be eligible for 21k if they are building, and the HCG is for anyone else looking to build.

The FHOG for existing residences will expire July 2014.

Thoughts?

[xisled]

I hope they do this in Melbourne within next 2 years I want to build my first house.

[Peter B - CV8]

Most of the Eastern seaboard states have changed policies a while ago - you now only get the FHOG for brand new/ newly built properties. Can't say that it's resulted in a surge of building approvals.....

[prydey]

here's a better idea. instead of a grant, how about just abolishing most of the ridiculous fees. that would probably work out to double the $20k. fee's are a joke.

[BHDOGS]

I think its a crock of **** that my tax dollars Are Being given to people who are rich enough to build there own homes talk about middle class welfare spend it on **** we need

[SLO247]

They say it ends at $400K...

Hardly middle class!

[Dr Jekkyl]

Originally Posted by prydey

here's a better idea. instead of a grant, how about just abolishing most of the ridiculous fees. that would probably work out to double the $20k. fee's are a joke.

And here is an expansion of that idea.

1) Abolish stamp duty and replace with broad based land tax so as to a) reduce entry prices, b) discourage land banking and c) provide a more stable source of revenue for state govt

AND

2) Limit negative gearing to new properties

[zilo]

Only new houses?

Great idea if you want to live and drive 2 hours out of a capital city and commute every day...

[poppa smurf]

regulations need to be imposed upon the banking sector to ensure that all rate reductions are passed on immediately

these government fee's, charges, banking interest rates and associated costs are killing the housing market

[blueoval]

Originally Posted by Ugg

Only new houses?

Great idea if you want to live and drive 2 hours out of a capital city and commute every day...

This is govco's attempt in stimulating the job market and construction industry. There is a lot of competition now at the moment with project home builders trying to generate new interest in the market as well, all trying to maintain affordable packages.

I reckon what it will do is perhaps drive existing home prices down a bit, while driving the new construction industry up.

Not good news for existing home owners looking to sell, but IMHO it will start to make people with existing homes to think about setting realistic selling prices now if they have to compete with the FHOG and HCG more directly now.

On the other hand, I reckon you'll find a lot of investors may flood the market with 'new' home packages for a bit.

[zilo]

Originally Posted by poppa smurf

regulations need to be imposed upon the banking sector to ensure that all rate reductions are passed on immediately

these government fee's, charges, banking interest rates and associated costs are killing the housing market

I've got bank shares and no mortgage.
I say don't pass the full rate and be slow about it...
(make my bank shares more valuable)

Not my fault people borrow more than they can afford.

Housing market gloom isn't the banks' fault...it's the house/land sellers' fault and the buyers' fault for agreeing to pay so much.

Not govt fault either that the market keeps increasing prices.

[pottery beige]

Originally Posted by Ugg

Only new houses?

Great idea if you want to live and drive 2 hours out of a capital city and commute every day...

shhhhh... radelaide man.. you can still buy and build 30 mins from cbd...

[poppa smurf]

Originally Posted by Ugg

I've got bank shares and no mortgage.
I say don't pass the full rate and be slow about it...
(make my bank shares more valuable)

Not my fault people borrow more than they can afford.

Housing market gloom isn't the banks' fault...it's the house/land sellers' fault and the buyers' fault for agreeing to pay so much.

Not govt fault either that the market keeps increasing prices.

mate i laughed out loud at that.....as soon as i posted my comment I thought about the "other side of the coin"

there are a lot of factors in todays economy that have stalled the market.......even the investors have sold up and put their money into other areas

I was advised to do the same

[flappist]

Originally Posted by Ugg

Only new houses?

Great idea if you want to live and drive 2 hours out of SYDNEY and commute every day...

Fixed it for you. Fortunately for all the crow eaters Sydney is not in SA

[XYGTHO]

I think its rediculous. Half the GFC is from people getting themselves into to much debt and now they are only assisting first home owners who want to do just that. The way I see it they should help them buy their first home (something affordable - NOT NEW). As said above if they can afford $400,000 plus to build they dont need the assistance. People who can't afford it will stretch themselves over the limit so that they can make use of the Grant.

[prydey]

Originally Posted by XYGTHO

The way I see it they should help them buy their first home (something affordable - NOT NEW). As said above if they can afford $400,000 plus to build they dont need the assistance.

too many young people want to start off from where their parents are currently at. they want to move out of home, straight into a home that has it all.

[flappist]

Originally Posted by XYGTHO

I think its rediculous. Half the GFC is from people getting themselves into to much debt and now they are only assisting first home owners who want to do just that. The way I see it they should help them buy their first home (something affordable - NOT NEW). As said above if they can afford $400,000 plus to build they dont need the assistance. People who can't afford it will stretch themselves over the limit so that they can make use of the Grant.

The idea is to get the building industry moving again.

And a small 2 bedroom 1 bathroom house on a small plot in the 'burbs is not $400,000.

As prydy said, there are too many with delusions of grandeur who believe they deserve to live in a mansion with 360 degree views and 5 acres of gardens.

My first house was a new 3 bedroom "box house" on 0.25 acre that cost $61,500. Similar are available right now in the same general area for $150-200k.

[blueoval]

A friend sent this in an email

First Home Buyers of off-the-plan apartments in the City and Riverbank precinct
First Home Owners Grant $15,000 (property up to $575,000)
Housing Construction Grant $8500 (property up to $400,000)
Stamp Duty Savings $16,330 (off-the-plan apartment valued at $400,000)
---------------------
Maximum Assistance $39,830

> Any person who buys an off-the-plan apartment in the City and Riverbank precinct
Housing Construction Grant $8500 (property valued up to $400,000)
Stamp Duty Savings $16,330 (off-the-plan apartment valued at $400,000)
---------------------
Maximum Assistance $24,830

> First Home Buyers who build or purchase a brand new home
First Home Owners Grant $15,000 (property up to $575,000)
Housing Construction Grant $8500 (property up to $400,000)
---------------------
Maximum Assistance $23,500

> Any person who builds or purchases a new home
Housing Construction Grant $8500 (property valued up to $400,000)
---------------------
Maximum Assistance $8500

> First Home Buyers who purchase an established home
First Home Owners Grant $5000 (property up to $575,000)
---------------------
Maximum Assistance $5000

[zilo]

I think I would self terminate before living in a high rise apartment box with swarms of cafe latte sipping over committed yuppies.

25-30 year mortgages on a concrete box?...

I shiver as I type about all the hidden costs of that lap pool, elevators, public lighting and owners' corporation disputes.

(a sub 400k bargain with 200 hundred bucks a week in outgoings...)

[mr smith]

Grants are silly, all they have done is artificially inflate housing prices. Win for banks, govts and boomers. Loss for any one entering now.