Guide to First Home Buyer Incentives in Western Australia

Buying your first home is an exciting milestone, but navigating the financial aspects can feel overwhelming. Luckily, Western Australia offers several incentives to help First Home Buyers (FHB) get onto the property ladder. Here’s a breakdown of the benefits and grants available to you. You must reside in the home for a minimum of six months and move in within 12 months from the contract date of purchasing the home, or within 12 months of completion if you’re building one.

1. Stamp Duty Exemptions and Reductions

Starting from the 9^th May 2024, significant changes are being introduced to stamp duty for first home buyers in WA:

• For Established Homes:
  • If you’re purchasing a property valued up to $450,000, you’ll be exempt from stamp duty entirely.
  • For homes priced between $450,000 and $600,000, a reduced stamp duty rate will apply, making it more affordable to secure your dream home.
• For Vacant Land:
  • If you plan to build your first home, you’ll benefit from stamp duty exemptions on vacant land purchases.
  • No stamp duty is payable on land valued at up to $300,000.
  • For land valued between $300,000 and $400,000, you will qualify for a reduced stamp duty rate.

These changes mean that first home buyers can save thousands of dollars, making the dream of homeownership more attainable.

• Helpful Link: For more details on stamp duty changes and how to apply, visit the Office of State Revenue (OSR) WA website.

https://www.wa.gov.au/government/publications/duties-fact-sheet-first-home-owner-rate

2. First Home Owner Grant (FHOG) – $10,000

The First Home Owner Grant is a one-time payment to help you buy or build a new home:

• Amount: $10,000
• Eligibility: You must be building or purchasing a newly constructed home.
• Property Value Limits:
  • In the Perth metro area, the property’s total value, including the land and home, must not exceed $750,000.
  • In regional areas, this threshold increases to $1 million.

This grant can provide a crucial financial boost to help cover your home construction costs.

• Helpful Link: You can find more information and download the application form on the OSR WA – First Home Owner Grant page.

https://www.wa.gov.au/government/publications/about-the-first-home-owner-grant

3. Home Buyer’s Assistance $2,000 Grant

This grant is tailored for those who are purchasing an established home rather than building new:

• Amount: $2,000
• Eligibility Requirements:
  • The property must be purchased through a licensed real estate agent.
  • The purchase price of the home must be $400,000 or less.
  • The property must be financed with the help of a loan from a recognized lending institution.
• Usage: You must use the property as your primary residence for at least 12 months.

This grant is designed to support first home buyers purchasing existing properties, giving them a little extra help with the associated costs.

• Helpful Link: To apply for the OSR WA – Home Buyers Assistance.

https://www.wa.gov.au/service/community-services/grants-and-subsidies/apply-home-buyers-assistance

Maximizing Your Benefits

To make the most of these incentives:

• Combine Benefits: If eligible, you can combine the stamp duty exemptions with the FHOG or the REBA grant for even more savings.
• Plan Your Budget: Consider the property value thresholds to ensure you maximize your exemptions and grants.
• Seek Advice: Always consult with a licensed settlement agent or property lawyer to understand your eligibility and how to apply for these incentives.

Making Your Homeownership Journey Easier

These initiatives demonstrate the WA government’s commitment to supporting first-time homebuyers. By taking advantage of these incentives, you can significantly reduce your costs, bringing you one step closer to owning your own home.

If you have any questions about your eligibility or how to proceed with your property purchase, feel free to reach out to a property professional for tailored advice. Happy house hunting!