First Home Owners Grant is a scheme which was established on July 1, 2000 and subsequently extended in the second half of 2008 to encourage home ownership or persons to own their homes. It is a scheme which provides funds to first home owners. This scheme has been particularly designed by the Federal Government keeping in mind the steep increase in cost of buying houses in real estate market. It would also help in motivating the housing industry. At this stage, no end date for the scheme has been given. According to First Home Owners Grant Scheme, single first home owners are eligible for payment up to $7000. The grant is administered with the help of banks and other financial institutions.
In addition to the First Home Owners Grant, the Australian Government has also introduced a First Home Owner Boost Scheme which would provide an additional $7000 to first home buyers who have brought a well established home and additional $14000 for building or purchasing new constructed homes. There are certain conditions for eligibility to First Home Owner Boost Scheme like entering into an agreement during the period October 2008 to June 2009. There is also a scheme ‘First Home Bonus’ wherein additional payment of $3000 - $5000 is granted on certain conditions. Under the First Home Owners Grant Scheme, it is important that certain conditions or factors have to be fulfilled before availing the same. The home owner or the applicant and his spouse or partner should not have previously received any grants and also should not have owned any property prior to July 2000 in any state in Australia. Moreover, this scheme is granted only to individuals who have completed 18 years of age and they should be an Australian Citizen. There should be an agreement to build or buy property after July 1, 2000.
Apart from eligibility, there are certain documents which have to be provided for the First Home Owners Grant Scheme like proof for permanent residence, passport or driving license, residential proof, Contract Agreement of the property. According to First Home Owners Grant Scheme, there are conditions which have to be satisfied in order to avail the grant. The property should be a residential property and should meet local standards. The First Home Owners Grant is given for houses that are newly constructed or established houses and not for renovation purposes. Houses, flats, townhouses all qualify for this scheme.
The First Home Owners Grant Scheme is applicable in all states in Australia except that certain rules or conditions may differ from state to state. Application forms are available with territory or state revenue offices. Payments are made after submitting the application along with the necessary documentation.
The income of the applicant will not be considered or taken while granting funds under First Home Owners Grant Scheme. Moreover, the Federal Government is planning to increase the funds triple fold from $7000 to $21000 for newly built homes under the First Home Owners Grant Scheme and in fact the real estate industry has welcomed this decision.