Buying your first home is a significant milestone, and for first homebuyers in Western Australia, there’s good news: there’s a range of Government first homebuyer support available to make your dream of homeownership a reality!
You may not be aware that there are many grants, concessions and special schemes that the Western Australian state government offers to ease the financial burden of purchasing your first property.
Most benefits are only available to brand new properties, meaning you could miss out on first homebuyer support by choosing to purchase an established home over a brand new or off-the plan property. These schemes include:
- $10,000 One-Off Payment: A one-off payment of $10,000 to help first homebuyers purchase or build a new residential property as their primary residence.
- Off-The-Plan Concessions and Rebates: Off-the-plan duty concession or rebate on apartments, saving up to $50,000 during the pre-construction and construction phases.
- 2% Deposits, No LMI: Buy a new home with just a 2% deposit and no Lenders Mortgage Insurance (LMI) through Keystart and the First Home Guarantee (FHBG).
Please note that savings will differ depending on individual circumstances but can result in several thousands of dollars saved.
Buying your first home could be more affordable than you think.
Keep reading on as we dive into more detail on these incentives on brand new property purchases, and why purchasing off-the plan could be a smart choice for you!
Why Are Incentives On Brand New Properties?
The WA government provides financial benefits and schemes to encourage the purchase of brand new properties for many reasons, some which include:
- Boosting the Economy and Jobs: Brand new homes help stimulate the construction industry, which has a broad economic impact. By boosting demand for new homes, this can also support job creation in construction, manufacturing and related sectors.
- Energy and Safety: New properties must adhere to current building codes and standards, which means they are likely to be more energy-efficient and safer than older properties. New builds help improve overall housing quality and sustainability.
- Strategic Urban Development: New housing developments can be strategically planned to align with infrastructure projects, such as roads, schools, and public transport. This coordinated approach helps manage urban growth and development more effectively.
- Addressing Housing Supply: Incentives for new properties can help address housing supply issues by increasing the number of homes available on the market. This can be particularly important in rapidly growing areas where demand is high.
- Preventing Price Inflation: Targeting new builds helps avoid inflating the prices of existing properties. Without incentives, there could be more competition for established homes, potentially driving up prices and making housing less affordable.
- Sustainable and Future-Proof: New properties can include features that address long-term needs, such as better insulation, smart technology, and adaptable designs. This aligns with broader goals of creating sustainable and future-proof housing solutions.
Here’s a breakdown of what’s on offer and how you can take advantage of first homebuyer support, and why buying a brand new off-the-plan property should be top of mind for first homebuyers (if you want to save thousands)!
First Home Owner Grant (FHOG)
One of the most well-known incentives is the First Home Owner Grant (FHOG).
The First Home Owner Grant is a one-off payment to encourage and assist first homebuyers to buy or build a new residential property for use as their principal place of residence.
The grant is $10,000 (at time of publishing).
It’s important to note that this grant applies exclusively to brand new properties, not existing or second-hand homes.
This policy is aimed at encouraging the construction of new homes and stimulating the housing market, making it a great incentive to purchase an off-the-plan property.
Eligibility Criteria:
- The home must be brand new.
- The applicant must be a first-time homebuyer.
- The property must be intended as your primary residence.
There are specific residence requirements and other conditions for this grant, so it’s essential for you to check the latest eligibility criteria on the WA Government’s Website or consult with a local advisor.
Stamp Duty Concessions
Stamp duty is one of the significant costs associated with buying a home, but first homebuyers in WA can benefit from stamp duty concessions that can potentially save thousands of dollars, even eliminating stamp duty costs altogether for certain thresholds.
Western Australians first homebuyers will pay no stamp duty on purchases up to $450,000 and will receive a concessional stamp duty rate on properties valued up to $600,000.
This concession is designed to make the process more affordable and is available to eligible first homebuyers purchasing a new or off-the-plan property.
Eligibility Criteria:
- You must be a first homebuyer.
- The property must be a brand new home.
- The value of the property must fall within the concession limits.
Additional Stamp Duty Concessions On Off-The-Plan Properties
The Off-the-Plan Duty Concession and Rebate Scheme is a great form of first homebuyer support, making homeownership more attainable for Western Australians while boosting job opportunities in the construction sector.
By offering a concession or rebate on stamp duty for eligible brand new apartment purchases, this scheme not only reduces the upfront costs for off-the-plan buyers, but also supports the growth of the construction industry.
This means first homebuyers can enjoy even bigger savings when they choose an off-the-plan property.
This concession offers up to 100% off stamp duty costs on properties valued up to $650,000 (with contracts signed in the pre-construction phase) and 75% off stamp duty costs (up to $50,000) before construction completion.
Keystart Home Loans
Keystart is a government initiative that provides affordable home loans to eligible first homebuyers, helping them get onto the property ladder with a deposit from as low as 2%.
Keystart offers competitive interest rates and lower deposit requirements, making it easier for buyers to buy their new home.
You can also save on Lenders Mortgage Insurance (LMI) through the Keystart initiative.
LMI is typically charged by the bank/lender when you borrow more than 80% of the home’s purchase price. Given that LMI can cost thousands of dollars, Keystart not charging this amount can represent a considerable monetary saving to you.
Eligibility Criteria:
- The property must be located in Western Australia.
- You must be a first homebuyer.
There are income limits and other qualifying criteria that need to be met, but the good news is that they have recently increased some criteria, allowing more first homebuyers into the scheme.
It’s crucial to review the specific requirements on the Keystart Website or speak with a Keystart representative.
The First Home Guarantee (FHBG)
The First Home Guarantee (FHBG) is a key component of the Home Guarantee Scheme (HGS), an Australian Government initiative aimed at helping eligible home buyers purchase a home sooner.
Administered by Housing Australia on behalf of the Australian Government, this program offers valuable support to first-time buyers.
Through the FHBG, Housing Australia guarantees a portion of an eligible home buyer’s loan from a participating lender. This guarantee allows buyers to secure a home with as little as a 5% deposit without needing to pay Lenders Mortgage Insurance.
The FHBG guarantee covers up to 15% of the property’s value. It’s important to note that this guarantee is not a cash payment or a deposit but rather a backing to help reduce the upfront costs of buying a home.
There are also limited places into the scheme (35,000 places available for FY 2024-25). View the eligibility criteria on the FHBG Website.
Why Choose Off-The-Plan As A First Homebuyer?
Buying off-the-plan can be a particularly advantageous option for first homebuyers for several reasons.
Offering a range of benefits for first homebuyers, from financial incentives and customisation opportunities to reduced maintenance costs and modern amenities.
However, it’s the Government incentives that can truly make a difference.
Buying off-the-plan can make you eligible for various government grants and incentives designed for first homebuyers.
Firstly, you may be able to save on stamp duty costs when buying off-the-plan. The amount of stamp duty is based on the value of the property at the time of signing the contract, not its future value, which can result in significant savings.
Plus, as you are buying a brand new property when you choose off-the-plan, you may qualify for the First Home Owner Grant, which can reduce your upfront costs.
Other programs such as Keystart and the First Home Guarantee can also provide substantial financial assistance when purchasing off-the-plan as a first homebuyer.
It’s an approach that can help you secure a new home that meets your needs and preferences while also potentially offering financial advantages and long-term value.
Combining Benefits To Maximise Your Savings
One of the most compelling reasons to consider purchasing a brand new home in WA is the ability to combine these various forms of Government support. By doing so, you can significantly reduce your upfront costs and make your journey to homeownership more affordable!
Here’s a rundown:
- First Home Owner Grant: $10,000 grant for new properties.
- Stamp Duty and Off-The Plan Concessions: Potential reduction or elimination of stamp duty costs, up to $50,000 in savings.
- Keystart Loans: Affordable home loans with as little as 2% deposit options.
- First Home Guarantee: Buy a home with a minimum 5% deposit and no lenders mortgage insurance payable.
The Journey To Buying Your First Home
The journey to buying your first home in Western Australia can be made much smoother and more affordable with additional first homebuyer support and incentives on brand new properties.
By taking advantage of these initiatives, you can unlock significant financial benefits and ease the process of purchasing a brand new home.
If you’re ready to take the next step, ensure you check the latest eligibility requirements and deadlines, or reach out to us!
Here at Jones Realty & Projects, we can guide you through every step of the property financing process, helping you navigate these opportunities effectively. Find out how we can help you take advantage of first homebuyer support here.
Contact Jones Realty & Projects To Find Out More
For first homebuyers, purchasing an off-the-plan property can offer several compelling advantages over buying an established home.
One of the primary benefits is the potential for significant cost savings, thanks to various incentives such as stamp duty concessions and rebates, which are available for off-the-plan purchases.
Additionally, off-the-plan properties typically come with modern designs and the latest building technologies, offering better energy efficiency and reduced maintenance costs.
Buyers also have the opportunity to customise certain aspects of the property, allowing them to create a home that better suits their preferences and needs.
Furthermore, with new developments often being located in up-and-coming areas, buyers may benefit from long-term capital growth as the neighborhood evolves and appreciates in value.
Apartment developments are typically located within the inner-city ring or premium waterside suburbs.
Would you like to live close to the city with entertainment options right on your door, or perhaps you want to live near the water in a new apartment that screams ‘you’ve made it’?
Then an off-the-plan apartment can offer you an affordable option to get into some of Perth’s most premium suburbs.
Overall, these factors make off-the-plan properties an attractive option for first-time buyers looking to maximise value and enjoy a contemporary living experience.
So, why wait? Dive into the vibrant new property market in WA and make the most of first homebuyer support, as your dream home might be closer than you think!
Contact us today on 9200 4418 and find out how to maximise the first homebuyer support available to you.
