In Australia, the rent-to-buy scheme is a popular option for those looking to purchase their own home. It allows you to rent a property for a set period, with the option to buy it at the end of the term. This can be an excellent way to get onto the property ladder, but there are some things you need to know about grants and concessions available in this scheme.
Grants and Concessions Available to First-Time Buyers
In Australia, there are several grants and concessions available to first-time home buyers. These can help you reduce the cost of your new home, or make it easier to obtain a loan. For example, the First Home Owner Grant (FHOG) is a one-off payment made by the government to help first-time buyers purchase their first home. The grant is means-tested, so you’ll need to meet certain criteria to be eligible; what’s more, the amount of the grant varies from state to state, but is typically around $15,000. To receive the FHOG, you’ll need to apply through your state or territory government.
You may also be eligible for a concession on your stamp duty, which is the tax you pay when you purchase a property. Stamp duty concessions are also means-tested, so you’ll need to speak to your state or territory government to see if you’re eligible.
Rent-to-Buy, Grants, and Concessions
More people are using the rent-to-buy scheme to get on the property ladder in Australia. If you’re considering this option, you may be wondering if you can still get government grants and concessions.
The answer is yes, you may still be eligible for some government assistance, even if you’re using the rent-to-buy scheme. However, the amount of assistance you can receive will depend on your individual circumstances.
For example, if you’re a first home buyer, you may still be eligible for the First Home Owner Grant. This grant is available in most states and territories and can provide you with up to $20,000 to help with the purchase of your first home.
If you’re a low or middle-income earner, you may also be eligible for the National Rental Affordability Scheme (NRAS). This scheme provides financial incentives to property investors who make their properties available to low- and moderate-income earners at a discounted rent.
If you’re looking to purchase a property through the rent-to-buy scheme, it’s important to speak to a financial advisor or mortgage broker to see if you’re eligible for any grants or concessions. They will be able to assess your financial situation and provide you with tailored advice. Ultimately, the important detail to note is that you don’t instantly shut yourself off to grants and concessions just because you choose the rent-to-buy scheme (brilliant news!).
Basics of the Rent-to-Buy Scheme
If you’ve been avoiding this scheme because you didn’t know how it interacted with grants and concessions, allow us to explain. The rent-to-buy scheme is a government initiative available through PublicSquare and other platforms that allows eligible first home buyers to enter into a rental agreement with the option to purchase their property at a later date. The key advantage of this scheme is that it gives first-time buyers time to save up a deposit while they live in their desired property.
It’s important to remember that the rent-to-buy scheme is not a grant or concession itself, but it can be used in conjunction with other grants and concessions that are available to first-time buyers, as we’ve seen in this guide. Another example is the First Home Loan Deposit Scheme (FHLDS) which is a government-backed scheme that allows eligible first home buyers to purchase a property with a deposit of as little as 5%.