According to the Australian Bureau of Statistics (ABS), there were 532 new loan commitments to owner-occupier first home buyers in August 2022 in SA. Further, first home buyers made up 25.6% of owner-occupier loan commitments for all dwellings in SA.
Here’s a breakdown of the state government grants available to assist you in the Festival State.
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What is the SA First Home Owner Grant?
The South Australian FHOG offers eligible first home buyers a grant of up to $15,000 on the purchase or construction of a new residential home.
In order to receive the grant, you must be building or purchasing a new home with a market value of $575,000 or less. This property could be a house, unit, townhouse, duplex, or off-the-plan apartment. You are not eligible for the grant if purchasing an established home, but you may qualify if it has been substantially renovated. The grant can also not be used for land or renovations.
Companies and trusts are not eligible for the grant.
There is no means test on income or assets to qualify for the grant.
The first home owner grant for established homes ceased from 1 July 2014.
How do you qualify?
To be eligible for the grant you must:
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Be 18 years of age or older.
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Be an Australian citizen or permanent resident.
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Not have held an interest in Australian residential property before.
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Not have received a first home owner grant in any state or territory.
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Reside in the home as the principal place of residence for a continuous period of at least six months. This must be done within 12 months of the date of settlement or the date construction is completed.
How do you apply for the SA first home owner grant?
Applications for the SA FHOG can be made through the RevenueSA website by completing the First Home Owner Grant Application and Lodgement Guide. You’ll need to provide information based on what your circumstances are, which will include:
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100 points of ID (birth certificate, passport, drivers license).
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Evidence you live in Australia (Medicare Card, debt/credit card).
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Evidence of residential address (utility documents, insurance policies).
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Evidence of relationship (if applicable).
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Contract to purchase a new home or an off-the-plan home (if applicable).
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Contract to build a home (if applicable).
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Copy of all major receipts for building costs during the construction of the home (if applicable).
Applications must be made within 12 months of completing the transaction.
Alternatively, you can lodge your application through an ‘approved agent’. These are financial institutions, with your agent typically being the lender you’re borrowing from. You can find a list of approved agents here.
When will the grant be paid?
If applying through Revenue SA, the grant will be paid:
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Within five days after approval of the application and evidence has been provided showing settlement has taken place when purchasing a new home or an off-the-plan home.
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Within five days after approval of the application and evidence providing foundations have been laid, when you have a contract to build.
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Within five days of RevenueSA approving the application and all evidence has been provided, if you’re an owner-builder.
If applying through an approved agent, the grant will be paid:
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At the date of settlement, when purchasing a new home or an off-the-plan home.
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On the date of first progress payment by Approved Agent, when you have a contract to build.
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When an application with evidence has been provided to the Approved Agent, along with paperwork confirming the home is complete and ready to live in, if you’re an owner-builder.
It’s important to note there is only one grant available for one property transaction. So if you’re married or polyamorous, you’re still only eligible for one $15,000 payment.
Can you use the grant for a deposit?
RevenueSA states there are no requirements as to how you use the grant, therefore, you could use the grant for a deposit. However, with the median Adelaide property price sitting at around $650,000, it’s unlikely to be enough to purchase a home on its own. Furthermore, if you want to avoid Lenders Mortgage Insurance (LMI), which can rack up into the tens of thousands, you’ll need a 20% deposit. Using the Adelaide median value of $649,983 (according to CoreLogic at the time of writing), a 20% deposit would require you to come up with $131,983.
Lenders also look favourably upon borrowers who have saved up their deposit themselves.
Can first home buyers get stamp duty discounts in SA?
There are no stamp duty discounts or concessions available to South Australian first home buyers. In fact, the Festival State is the only state or territory to offer no exemptions or concessions for anyone, and also boasts some of the highest taxes. Doesn’t sound like much of a festival, does it?
What other SA schemes and grants can first home buyers use?
There are a number of federally-funded schemes and grants that when used in conjunction with the SA FHOG can add up to a considerable amount.
The Regional First Home Guarantee
The Regional First Home Buyer Guarantee Scheme is designed to target first home buyers in regional Australia.
With the Regional First Home Guarantee, 10,000 guarantees each year will help first-home buyers purchase a regional home with as little as 5% loan deposit without having to pay LMI. This means you can borrow up to 95% of the property value, with the federal government providing the lender with a guarantee up to 15%.
The Family Home Guarantee
The Family Home Guarantee was announced in the 2021/22 Federal Budget and allows single parents to secure a home loan with as little as a 2% deposit, without having to pay LMI. Launched 1 July 2021, the scheme will be offered to 5,000 single parents every financial year until June 2025. It is restricted to owner-occupier, single-parent borrowers earning less than $125,000 annually and making principal and interest repayments, on loans 30 years long or less.
The First Home Super Saver Scheme
The First Home Super Saver Scheme (FHSSS) helps aspiring first home buyers save up a deposit by utilising the tax discounts that superannuation can offer. First home buyers can contribute up to $15,000 towards the scheme in one financial year and withdraw a maximum of $50,000 (plus any earnings) from it overall.
Savings.com.au’s two cents
If you’re a first home buyer, chances are you’ll be happy to accept any financial assistance on offer. Although the $15,000 South Australian FHOG may not seem like a lot compared to property prices, when combined with other federal government grants and schemes, there is considerable financial help available. Consider consulting a financial adviser to see which schemes you may be eligible for.
Photo by Phil Graaf on Unsplash
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