What Is The Home Owners Grant?

The Queensland First Home Owners’ Grant is a state issued financial aid that helps first time home owners acquire their properties at a faster rate.

Candidates get either $15,000 or $20,000 to complete the build or facilitate faster payments, given that the property is valued at less than $750,000.

Contracts that start from July 2016 until the end of June 2018 receive $20,000. On the other hand, contracts from October 2012 to 30 June 2016, or 1 July 2018 or later get $15,000.

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Home Owners Grant: Is It For Me?

Aside from being a first-time homeowner, there are other requirements for eligibility. These include:

Age: Interested parties must be at least 18 years older or above. This also applies to co-applicants such as spouses and household members.

Citizenship: The grant is only limited to Australian citizens or permanent residents. As long as one of your co-applicants is an Australian citizen, you are still eligible for the home owners grant.

First-time grant recipient: This is exclusively for first-time homeowners, meaning individuals who were able to receive their grant before, or are applying with someone who has, will not be eligible for the grant.

Home ownership: Your house is also grounds for evaluation. Either you or your partner must not own any other properties in Australia that you live in or have lived in. This is limited to people who have not owned a home before July 1 2000.

On the other hand, applicants with rental properties can still apply for the grant. You must be able to provide documentation that proves that the property has been used for investment purposes only. Supplementary documents can include a lease and tax returns of the rental property.

The Queensland government website has a full eligibility test to help applicants understand their situations better. Visit the portal to access the full quiz.

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Who Isn’t It For

The home owners grant doesn’t accommodate some personalities or circumstances. These include:

  • If the home is owned by a company and not two individuals
  • If the home is valued at more than $750,000
  • If you held interest at a residential property before 1 July 2000
  • If you were already able to get some financial help from a relative or family member who will also frequently stay in the property

Grant Nullification: What Not To Do

The First Home Owners Grant is a tremendous opportunity for couples. Even so, recipients have to uphold some obligations to avoid incurring any penalties and even possibly losing the grant.

The rules regarding renting your property are pretty tricky. For example, couples are obligated to move in their property within a year of completion and live there for 6 months straight. During this 6-month period, you can rent one of the rooms in the house under the assumption that the other person’s presence will not affect how you live your home. For example, some parts of your home will be rendered unusable to uphold the privacy of your tenant.

Be more cautious after moving in for one or two years. Renting any part of your home may affect your eligibility altogether. Note that the home owners grant may be rescinded. If you were unable to use the money for the sole purpose of buying or building a home, you are likely to lose your grant.

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How Do I Apply

There are currently two ways to submit an application. You can do it through banks and lending institutions or through the Office of State Revenue.

1. Through Banks

Applications through approved agents (for example banks, lending companies, and similar financial institutions) are much faster than state revenue grants. Before proceeding, ensure that you and your co-applicant are fully eligible for the grant. Afterwards, submit a copy of the original application form and process is through your bank.

They will be forwarding your application through the Office of State Revenue.

 2. Through the Office of State Revenue

Don’t want a third party to handle your business? You can submit the forms to the Office of State Revenue yourself. Just complete and submit the original application form, as well as some supporting documents,  and send them to the following address:

Office of State Revenue
GPO Box 953
Brisbane Qld 4001

You should receive an update within 10 working days. Delays happen when applicants fail to submit a form or two, so make sure that all the proper documentation are included in your submission.

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Home Owners Grant Payment

There are different ways to get paid depending on your application process. If you applied through a financial institution, your payments should generally be:

  • at settlement, for buying a home (including off-the-plan purchases)
  • on the first drawdown of funds, for contracts to build your home
  • on receipt of a final inspection report, for building your home as an owner–builder.

Payments done after applying directly to the Office of State Revenue can be pretty nuanced. To see the full list of possible payments, click here.

The home owners grant is a great option for parties who are investing in real estate for the very first time. It’s worth looking into the requirements and seeing if you are eligible. To learn more information about the Queensland home owners grant, visit their website.

Interested in building your own granny flat? Call or email Hoek Modular Homes today!