Your Comprehensive Guide to First Home Buyer Incentives in Queensland and Federal Support (2024)

Buying your first home can be an exciting yet overwhelming journey, especially given today’s rising property prices and complex market. At First Home Buyer Advisors, we understand these challenges and are here to guide you through every step, ensuring you make the most of the available incentives to ease your way into homeownership.

To help you make informed decisions, we’ve compiled a detailed guide to the Queensland and federal government incentives available in 2024. These programs are designed to reduce upfront costs, provide tax savings, and make buying your first home more accessible.

1. Queensland State Government Incentives for First Home Buyers

Queensland offers several incentives to assist first home buyers, particularly those purchasing new builds or properties in regional areas. Here’s how you can benefit:

First Home Owner Grant (FHOG)

The FHOG offers $30,000 to first home buyers purchasing or building a new home or substantially renovated property.

Eligibility Criteria:

• The property must be valued up to $750,000.
• Applicants must be 18+ years, Australian citizens or permanent residents, and must not have previously owned property in Australia since July 2000.
• Buyers must live in the property for at least six months within the first year of purchase.

Stamp Duty Concessions

Queensland offers generous stamp duty concessions for first home buyers:

• Full Exemption: Properties up to $700,000 are exempt from stamp duty.
• Partial Concession: For properties between $700,001 and $800,000, a sliding scale applies.
• Concessions for Vacant Land: For those buying land to build their first home, full concessions apply for land valued up to $350,000, with partial concessions for land up to $500,000.

Regional Home Building Boost

Designed to encourage building in regional areas, this grant provides additional financial support to those purchasing or building a home in designated regional communities, reducing the cost of entering the market outside metropolitan areas.

Queensland Housing Finance Loan

The Queensland Housing Finance Loan may be available for Queenslanders who can afford to buy or build a home but can’t get private finance from a bank or building society.

What are  the Eligibility Requirements:

• Must live in Queensland and be a citizen or permanent resident of Australia.
• No current property ownership.
• Household income must be less than $141,000 annually.
• Must have good credit, no significant debts, a regular savings history, and be able to afford loan repayments without hardship.

Loans Best Features:

• Variable or fixed interest rate.
• Minimum deposit of 2% of the purchase price or the gap between the maximum loan amount and the property price.
• No mortgage insurance or monthly account-keeping fees.

What are the Additional Costs?: Upfront costs include application fees, independent financial advice, and mortgage registration fees.

2. Federal Government Incentives for QLD First Home Buyers

The federal government’s incentives are designed to complement Queensland’s offerings and provide further support by reducing deposit requirements and enabling tax-effective savings.

Home Guarantee Scheme (HGS)

The HGS allows eligible buyers to secure a home with a smaller deposit, helping to reduce the need for costly Lenders Mortgage Insurance (LMI).

• First Home Guarantee (FHBG): Buy a home with a 5% deposit, saving on LMI.
• Regional First Home Buyer Guarantee (RFHBG): Supports regional buyers with a 5% deposit and no LMI.
• Family Home Guarantee (FHG): Specifically for single parents, allowing a purchase with a 2% deposit.

Eligibility for HGS Schemes:

• Australian citizens or permanent residents aged 18+.
• Income limits: $125,000 for singles, $200,000 for couples.
• Property price caps vary by region, such as $700,000 for major Queensland cities and $550,000 for regional areas.

First Home Super Saver Scheme (FHSSS)

Save for a deposit through superannuation, benefiting from lower tax rates.

Eligibility:

• First-time buyers aged 18+ can contribute up to $15,000 per year (capped at $50,000 in total).

Help to Buy Scheme

Expected to launch in 2024, this scheme offers an equity contribution of up to 40% for new homes or 30% for existing homes.

Eligibility Criteria:

• Income limits: $90,000 for singles, $120,000 for couples.
• Australian citizens or permanent residents, intending to live in the property.

3. Combining Federal and Queensland Incentives for Maximum Benefit

First home buyers in Queensland can combine state and federal incentives to maximize their financial advantage:

• Stacking Grants: Use the Queensland FHOG with federal incentives like the Home Guarantee Scheme to reduce upfront costs.
• Apply Early: Federal schemes have limited annual places, so early applications are advised.
• Consult Professionals: Mortgage brokers and financial advisors can help navigate eligibility criteria for each program.
• Plan for Long-Term Costs: While these incentives reduce upfront expenses, buyers should budget for ongoing costs like mortgage repayments, property taxes, and maintenance.

Conclusion

The combination of Queensland and federal government incentives provides substantial support to help first home buyers overcome financial barriers and enter the market sooner. By understanding and leveraging these programs, you can significantly reduce your upfront costs and confidently start your journey to homeownership.

Need Guidance?
First Home Buyer Advisors is here to help you make sense of these programs and take advantage of every opportunity available. Contact us for a personalized consultation, and let’s start creating a strategy tailored to your needs.