If you’ve recently tried looking for a rental in WA, you don’t need to read the headlines to know that the vacancy rate is at a record low and rents are rising at an eye-watering rate. However, there is a silver lining: WA is the most affordable state for home buyers. To help people get out of the rental market and into their own home, the Western Australian Government offers a $10,000 First Home Owner Grant (FHOG) for new homes.
The key criteria for this grant is in its name – first home. If you’ve never owned residential property in Australia before, you qualify for the $10K top up to your budget. Better yet, it doesn’t matter how much you earn – the grant isn’t means tested.
What is missing from the grant’s name however, is the word ‘new’. The grant is only available if you’re buying or building a new home. Cedar Woods has a number of projects that qualify. The FHOG isn’t available on an established home, unless it has undergone a major reno in which most of the home has been replaced (think The Block-style transformation) and you will be the first person to occupy it after the work is complete.
If you can answer ‘yes’ to the following criteria, chances are you qualify for the FHOG:
The easiest way to apply is to get your bank or financial institution to lodge your application. If it isn’t an approved lender, or you don’t need finance for your home purchase, you can lodge your application directly with RevenueWA. Just ensure you do it within 12 months after handover of your new home. Whichever way the application is submitted, it is also viewed as seeking pre-approval for the first home owner rate of duty (FHOR) – another state government initiative to help you into your own home.
There are a number of state and federal grants and schemes on offer. When you combine them with the WA FHOG, that new home suddenly seems much closer. It’s important to discuss your individual circumstances with a mortgage broker who can advise you on the right way forward. A mortgage broker can also investigate whether you qualify for:
There’s no more affordable state than WA to buy a home, and with house prices only likely to rise, there’s no better time than now. To help you familiarise yourself with how the process works, the terminology you’ll encounter, and your finance options, we’ve put together a helpful Guide For First Home Buyers. Happy reading – and house hunting.