FHOG ends soon right? Then what on earth...

Hello all. I was reading this page:

http://experts.realestate.com.au/buying/buying-news-mixed-news-for-first-home-buyers

... discussing changes to payments for Victorian first homebuyers.

I'm in NSW so they don't apply to me. But I noticed the following statement in the article:

"First homebuyers purchasing existing properties will still be eligible for the $7000 first homebuyers grant under the federal scheme."

Now I assume like any other government budget, any changes don't come into effect until the next financial year (July). So what on earth are they talking about when they say first homebuyers will still receive the $7000 FHOG as well as the new changes?

The $7000 FHOG ends in June - doesn't it!?
 
Hello all. I was reading this page:

http://experts.realestate.com.au/buying/buying-news-mixed-news-for-first-home-buyers

... discussing changes to payments for Victorian first homebuyers.

I'm in NSW so they don't apply to me. But I noticed the following statement in the article:

"First homebuyers purchasing existing properties will still be eligible for the $7000 first homebuyers grant under the federal scheme."

Now I assume like any other government budget, any changes don't come into effect until the next financial year (July). So what on earth are they talking about when they say first homebuyers will still receive the $7000 FHOG as well as the new changes?

The $7000 FHOG ends in June - doesn't it!?

I think they are referring to the Victorian state based grant, which I think is 2k atm, and will be scrapped for existing properties as of the 1 July as per the recent state budget. The federal grant still stands (7k) for existing properties and the state based grant for new homes has been increased.

I didn't think there was any plan by KRudd to scrap the federal FHG though..
 
The $7000 grant has been kicking around for ages - it came in an annoyingly short time after I bought my first house for $40,000. Which would be worth $250-300k or so now and the grant is still $7000 ... *sigh* wish I'd kept the place ...
 
You must sort out who is giving away what. The FHOG is $7k from the feds to partly offset a buyer, once only, for the GST imposed on the construction of new homes. Reasonably, they determined that established homes prices would rise in parallel with new constructions. To the best of my knowledge this is carved in stone and so it should be.

There was a federal FHOG BOOST which has been rescinded and I know Vic (stupidly) added extra grants and even more if you built in the fire prone areas. :eek:

Nothing is simple so if you need to know something you must read.
 
To the best of my knowledge this is carved in stone and so it should be.

Nothing is simple so if you need to know something you must read.

Thanks... Unfortunately reading is what got me into my current state of confusion. :eek:

The article I quoted above seems to indicate the $7000 federal grant will still be available (after the new VIC bonuses kick in). But then reading here: http://www.homebuyer.nsw.gov.au/first_home_benefits.html#benefit0 - the last column shows the 30th June (as the final available date).

So I went and looked up the recent budget speech, but found no mention of the $7000 First Home Owner Grant being extended (together with last date in the columns being June 30, I took these two to mean the FHOG may end June 30). Then I read the 50% stamp duty for new homes in NSW ends as well which adds weight to that assumption.

Because the VIC article seems to contradict the government site, I was hoping someone here knew for certain if the $7000 FHOG ends in June. I've emailed www.osr.nsw.gov.au to hopefully clear things up.
 
Hey Familyman, as far as i know the FHOG is state driven.

From http://www.firsthome.gov.au/
The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.
Under the scheme, a one-off grant of up to $7000 is payable to first home owners that satisfy all the eligibility criteria.

As for VIC the grant will be extended till 2011, i'm not sure about NSW
http://www.sro.vic.gov.au/SRO/sronav.nsf/alltitle/First Home Owners?open
Contract Date (1 July 2010 - 30 June 2011)
 
The federal component of the grant, $7000, is continuing.

The Vic component of $2000 on existing properties is being dropped. The Vic government is increasing grants for new homes (where the occupant is the first person to live in that home).

Part of the idea is to stimulate construction in Victoria, which is desperately needed. It'll probably just end up in the developers pocket like most other government intervention. :rolleyes:

The FHOG is administered by the state revenue offices, but there is a state and a federal component.
 
Thanks all...

I received this reply from NSW OSR:

---
The First Home Owner Grant ($7000) and exemption or concession from duty are ongoing schemes with no end date set.

The NSW New Homebuyers Supplement scheme ($3000) applies to contracts dated between 11 November 2008 and 30 June 2010 (inclusive). For owner builders, construction must have commenced between those dates.

Providing you meet all the eligibility requirements you may be entitled to the grant and stamp duty exemption.
---
 
The $7000 grant has been kicking around for ages - it came in an annoyingly short time after I bought my first house for $40,000. Which would be worth $250-300k or so now and the grant is still $7000 ... *sigh* wish I'd kept the place ...

I am sure the Australian governments would love to remove the FHOG of $7K, but it would be too much political pain to bear with little gain. The grant is pretty much other taxpayers funding FHBs, and is decreasing in buying power at rate of inflation since its introduction in 2000.

Realistically, the grant is really worth around $5K now in 2010's buying power (assuming 3% inflation over the last 10 yrs).

Regards

Daniel Lee
 
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