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Owning a home is a dream shared by many Australians, and the South Australian government has implemented various initiatives to help first-time buyers achieve this goal. One such program is the South Australian First Home Owner Grant (FHOG), a financial assistance scheme designed to provide eligible individuals with a boost towards purchasing their first property.
What is the South Australian First Home Owner Grant?
The South Australian First Home Owner Grant is a government initiative aimed at supporting first-time homebuyers in acquiring their first property.
The grant offers financial assistance of up to $15,000 for first-home buyers building or buying a new home. By reducing the financial burden on first-time buyers, the grant acts as a catalyst for homeownership and promotes economic growth in the real estate sector.
How to qualify for the grant?
To qualify for the South Australian FHOG, individuals must meet a certain set of criteria. The primary requirement is that the applicant must be aged 18 years or older, and must not have previously owned residential property in Australia.
Additionally, the individual must intend to occupy the property as their principal place of residence for a continuous period of at least six months, commencing within 12 months of settlement or completion of construction.
What are the eligible property transactions under the grant?
The South Australian FHOG is for first-home buyers who are buying or building a new home.
A new home refers to a property that has not been previously occupied or sold as a place of residence. Substantially renovated homes can be considered new, provided that it meets the amount of renovation needed.
The property can be a house, townhouse, or apartment, provided that they fit the definition of a new home.
The grant places a value cap on the property:
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For transactions entered into between 17 September 2010 and 14 June 2023, the market value of the property must not exceed $575,000.
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For transactions entered on or after 15 June 2023, the value of the property must be $650,000 or less.
How to apply for the First Home Owner Grant in South Australia
Applying for the First Home Owner Grant in South Australia is a relatively straightforward process.
Upon entering into a contract to purchase an eligible property, individuals can complete and submit an application form to RevenueSA, the state's taxation authority responsible for administering the grant.
Most of the time, however, the lender providing the financing for the purchase of the home will be the one who will lodge the application for the grant. The lender must be on the panel of approved agents to be able to lodge the grant application.
When will the grant be paid?
The grant will be paid depending on where the individual lodged the application and the type of transaction.
When applying through a lender, the grant will be paid at settlement for the purchase of a new home and in off-the-plan transactions.
Under a contract-to-build, the grant will be paid on the date of the first progress payment of the lender.
For owner-builder transactions, the grant will be paid when appropriate evidence is provided stating that the home is complete and ready for occupancy.
For applications lodged directly to RevenueSA, things are slightly different in terms of getting the funding.
For the purchase of a new home or off-the-plan purchases, the grant will be paid within five days after the approval of the application and when the RevenueSA has received a proof of lodgement of registration with the Lands Titles Office or a completed confirmation of settlement.
For contract-to-build transactions, the grant will be paid within five days after RevenueSA approves the application and receives a copy of the first progress payment invoice from the lender.
Frequently Asked Questions about the South Australian First Home Owner Grant
Can the grant be used as part of the deposit for the property?
Yes, the South Australian FHOG can be used as part of the deposit for the property purchase. It provides financial assistance to first-time homebuyers, enabling them to accumulate the necessary funds to secure their first home.
Is there an income cap or means test for the grant?
No, the South Australian FHOG does not have an income cap or means test. As long as applicants meet the eligibility criteria outlined by RevenueSA, they can apply for and potentially receive the grant.
Can the grant be used in conjunction with other government assistance schemes?
Yes, the South Australian FHOG can be combined with other government assistance schemes, such as the First Home Loan Deposit.
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Collections: First Home Buyer Buying a home
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