The top five ways to maximise the first home owners grant and get the true benefits.

In 2008 the FHOG was increased in an effort to boost the property market during the global financial crisis but from 31 December 2009 it will fall back to the original $7,000.  This one off grant of $7,000 is still a major help for many first home buyers and here we show you how to make the most of the money.

1) Adding Value 
Adding value to your home is a great way to make the property a powerful investment.  So, if you are building your own home or purchasing a brand new home, consider putting your first home buyer grant toward a luxury aspect that will add value to your home over time.  This may be a classic feature, or extra space.  Take some time to look into what current trends are, and consider features that have proven popular over the years.  Find out what homebuyers want in your area.    

2) Strike while the price is right
Recently there has been an increase in first home buyers to the property market.  Many first homebuyers realise that property prices are falling and interest rates are low.  You could use your First homeowner grant as your deposit and get onto the property ladder now while conditions are good.  If you act fast, you could own your own home sooner than you think.  

3) Smart Money
You could be smart and buy a home that needs some renovation.  You will get the property at a lower price, and then use your First homebuilders grant for renovations.  $7,000 can go a long way to improving a less than perfect home, and before long, you will have your dream home.  Renovating first homes may seem challenging but in fact it is the ideal way to create a home that precious and modern, and which appeals to your tastes.

4) Loan Value
Search for the right home loan, to ensure that your grant does not get swallowed up by high repayments.  As a first homebuyer it is tempting to take out a loan with a low interest rate, but very soon you will realise that there are no loan features and it will cost you more if you wanted flexible repayments.  On the other hand, when you buy first time don’t get caught out with a loan that is too expensive, it’s not worth paying a high interest rate if you don’t need or want all the added extras.

5) First Home Buyer Concessions
If you are eligible for the first home buyer grant then you may also be able to claim further financial benefits or assistance.  Many states offer a further First Home Bonus or concessions on stamp duty.  These can be a considerable help, on top of your FHOG.  In some cases the stamp duty concession can be as much as $15,000 so it is certainly worth checking to see what you are eligible for and applying for the extra concessions available to you.  Talk to your mortgage broker to find out.


First home buyers.. if you are ready to take the plunge into property and want to apply for your first home owner grant now, call us on .