Tasmania- $20,000 First Home Buyer Grant and Boost is back
The Tasmanian government announced last week they are increasing the first home buyer grant for new homes from $10,000 to $20,000. The higher amount comes into effect on the 1st July 2016 and runs until 30 June 2017. It will then revert back to $10,000.
The increased grant has been back dated to 1st January 2016.
To be eligible for the grant you will either;
- build your home through a registered builder;
- build your home as an owner builder;
- purchase a home off the plan; or
- purchase a new home
All applicants for the grant have to occupy the property as their principal place of residence for a continuous period of at least six months. The period starts within twelve months of settlement if purchasing a new home or within twelve months of the date of the occupancy certificate if building.
For first home buyers who are thinking about entering the property market, this announcement presents a great opportunity to get started. Adding an additional $20,000 onto current savings may make the difference between buying a home or not.
Bear in mind that the first home buyer only needs to live in the property as their principal place of residence ie their home for six months. In my opinion, a very generously short period of time. After six months, they can move out and rent the property and claim the tax benefits available to property investors. Perhaps moving back home to continue to live cheaply. All the while the tenant and the tax man continue to help buy the property. It’s a great strategy.
Once there is enough equity in the property, the equity can be used to help buy a place to live in. Or the house can be sold and the equity used as a deposit for a home. Either way it can be a quicker way to get started.
For more information on how you can take advantage of the $20,000 grant please contact Paul 0410 520 398 or paul@halogenhomeloans.com.au
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