FHOG Update: What You Need to Know

In their announcement of the 2015-2016 budget, the State Government made a major change that affects the real estate scene, particularly residents who are planning to buy their first homes. The $3000 First Home Owners Grant (FHOG) that you can qualify for when you buy an established property is no longer available. Fortunately, the FHOG for purchasing or building new homes was not reduced or removed from Western Australia’s budget.

This update should make it more encouraging for first home buyers in Perth to opt for building their properties instead of buying established ones, even if the latter can be more affordable in some cases. The $10,000 grant can definitely be helpful in your first steps since it can reduce your home buying expenses significantly. Likewise, some experts would argue that established homes come with maintenance costs that offset your upfront savings anyway, which makes home construction a more viable choice.

The process of applying for the FHOG and the eligibility criteria are unchanged, too. You would need to fill out the necessary forms and submit the required documents to the Office of State Revenue. You can also work with home builders that employ or work closely with FHOG Approved Agents, who can facilitate the application to assist you. This grant can be required or recommended by some financial institutions providing mortgages, as well.

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