How the First Home Owner Grant Can Supercharge Your Buying Power: A Real-Life Example

Many Australians see the First Home Owner Grant (FHOG) as a valuable boost when stepping into the property market. In Queensland, this government incentive can offer up to $30,000 to assist with the purchase or construction of a qualifying new home, helping to alleviate the financial strain for first-time buyers.

Understanding the First Home Owner Grant (FHOG)

The FHOG is designed to support first-time home buyers with either a new build or a newly purchased residential property. As per the Queensland guidelines effective in 2025, eligible buyers can receive:

A grant of up to $30,000 for a new home
Property value must be under $750,000
The buyer must move in within 12 months and reside there for at least 6 months
Available exclusively to Australian citizens or permanent residents aged 18 and older

This grant is non-repayable and can be combined with other benefits such as stamp duty concessions.

A Practical Example

Property Scenario:

Purchase Price: $645,000
Area: A suburb in the growth corridor that qualifies for new builds
Deposit Saved: $35,000
Stamp Duty before concessions: Approximately $15,925
Stamp Duty with the first home buyer concession: $0
Loan Amount Needed: $610,000

Scenario Without the FHOG:

The buyer needs a deposit of $35,000.
Combined upfront expenses (deposit plus stamp duty) total around $50,925.

Scenario With the FHOG:

The buyer receives $30,000 directly from the government.
This reduces the required upfront cash (deposit plus other costs) to approximately $20,925, subject to lender conditions.
The stamp duty is fully waived thanks to first home buyer concessions.

Overall Impact: The combination of the grant and available concessions can lower initial expenses by over $30,000, potentially enabling buyers to secure their property much earlier than anticipated.

Steps to Apply for the Grant

To take advantage of the FHOG, you will need to prepare and submit several documents:

A completed FHOG application form
A signed contract of sale
Proof of identity and residency
Comprehensive details of the property and the financing arrangements

Applications can typically be processed through your chosen lender or directly with the Queensland Revenue Office.

Conclusion

The First Home Owner Grant can significantly enhance the affordability of your first home purchase. If you're considering a new build under $750,000, exploring the FHOG and associated stamp duty concessions might be a smart move to expedite your dream of homeownership.

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