Am I Eligible For The First Home Owner Grant?
If you are buying a new home valued up to $750,000 you may be eligible for the $10,000 First Home Owner Grant (FHOG). You still have to pay stamp duty on your purchase, but you may be eligible for a range of concessions.
What are the rules of the FHOG?
- Your new home can be a house, townhouse, apartment, unit or similar, but it must be the first sale of the property as a residential premises.
- You must be at least 18 years of age at settlement or completion of construction.
- You (or at least one applicant) must be an Australian citizen or permanent resident.
- You (or at least one applicant) must intend to live in the home for at least 12 months, commencing within 12 months of settlement or completion of construction.
- Established homes do not receive the FHOG but you may be eligible for stamp duty concessions.
Watch Out for the Sunset Clause
You’re a first home buyer and you’ve bought your first property – a swanky new apartment in the heart of fashionable Fitzroy. You’ve had a look around the display suite and have been dazzled by the size of the stamp duty savings on offer. You’re already mentally spending the savings on furnishings and decorations. Having been told that the building will be finished in 6 months, you’ve started thinking about booking a removalist and planning your housewarming party. But there’s a catch – you’ve taken your Contract of Sale to your lawyer who has pointed out… the Sunset Clause!
The Sunset Clause, sometimes referred to as the “Registration Period”, is the timeframe set by the vendor developer to build the apartment block, and be in a position to transfer to the purchaser a Certificate of Title. However, this can vary anywhere from 6 months to 60 months depending on the size and nature of the development.
So whilst you may have been sold on a 6 month move in date, the time frame from the day of sale to completion and move in can often be very different, and is something every purchaser of Off the Plan properties should be mindful of. Should the Sunset date arrive and the plan for the development has still not been registered with Land Victoria, the purchaser will have the option to walk away from the contract and recover their deposit money – not exactly the happy ending you envisaged when you first purchased the property.
When purchasing Off the Plan, don’t hesitate to bring your contract in to us for review. We can ensure that you’re not left in the dark as to when the sun sets.
Ask An Agent
We asked Mark Dixon, Senior Property Consultant & Auctioneer at Fletchers to share his thoughts on the current state of real estate in the local area.
“The market has stabilised and we are still seeing very strong results. I predict that the market will remain strong throughout the Heidelberg area, this has been driven by the low interest rates with the reserve bank leaving interest rates on hold at 2%.
I believe the up and coming area for 2016 will be Heidelberg Heights. Young home buyers are renovating properties and the larger blocks of land are getting redeveloped with multiple townhouses. Improved infrastructure is also boosting prices in the area.
The growth for units and apartments in the first quarter is 1.6%. This is due to current laws allowing overseas buyers to only purchase brand new properties and first home buyers only being eligible for a grant if the property is brand new.”
JPLegal @ Capeside Coffee
We love supporting local businesses. We recently dropped by Capeside Coffee, a new café located in Cape Street, Heidelberg and asked them about their experience in opening and running their new business.
“Being both Parv and my first venture, we believed that entering into an already saturated suburb would be even more of a challenge then opening a small business. Heidelberg is a fantastic area with a market screaming out for specialty coffee. As opportunity presented itself we jumped at the chance to open up a shop on Cape street and offer what we believe, is now, the leader in coffee within the Banyule area.
Taking on a small business is no easy feat. Each day presents new challenges and obstacles which we absolutely thrive on. Offering great service and product is what we do best and we can’t wait for what’s next. This is only the beginning,” Hannah Lancman, Capeside Coffee.
Are you a small business and would like to be featured in our next newsletter? Get in touch by replying to this email.
Community Wills Day With The Salvation Army
Recently our lawyer, Vanessa Bozinoska
Donations and fundraising garnered by this program all go towards The Salvation Army who facilitate a great number of community service programs including aged care support programs, community meals programs, crisis and accommodation support and also programs and services for people with an intellectual disability.
We commend the Salvation Army not only for a great initiative, but also for all of the work they do in diverse communities all over Australia. We look forward to participating in the next program that will take place in Preston. More information can be found at www.salvos.org.au.