Great news for first home buyers in the sunshine state: the First Home Owner’s Grant (FHOG) is being extended to 31 December this year. The Queensland state government initiative was due to expire at the end of June, but it was recently announced that under the 2017-2018 State Budget, funding would be allocated to extend the grant.
This is obviously great news for first home buyers. Let’s look at how the FHOG works and what its extension means for you.
What is the First Home Owner’s Grant?
The FHOG is designed to help first home buyers to buy their first home. Eligible property seekers can receive $20,000 to put towards the purchase of their first property, use the funds to buy an off-the-plan property, or build their own home.
To be eligible for the grant, you need to be an Australian citizen or permanent resident purchasing a first home worth less than $750,000.
Why has the grant been extended?
The allocation of $30 million to extend the FHOG is part of the Queensland government’s Housing Strategy, a framework that is committing $1.8 billion over the next decade to housing reform.
These funds are intended to improve Queenslanders’ access to safe, affordable and appropriate housing. Part of this is helping those trying to get a foot on the property ladder enter the housing market sooner.
What does the extension of the grant mean for first home buyers in Queensland?
If you’re a Queenslander looking to start a family in a new home, you should be jumping for joy!
“This is one of the most effective ways of helping families to get a start with a new home while simultaneously creating construction jobs and spurring on the economy,” Treasurer Curtis Pitt told Domain on 13 June. And plenty of Queenslanders seem to agree – the Queensland government claims that 6,353 applications had been received as of 31 May.
The extension of the FHOG for an extra six months will allow first home buyers to access the additional funds until the end of the year. So if you have been thinking about taking out a home loan in Queensland later in the year, you now have an added incentive.