Home Buyers Assistance Account (Western Australia)
The Home Buyers Assistance account is available to residents of Western Australia, covering up to $2000 for incidental expenses incurred when you buy property.
What can you use the Home Buyers Assistance Account for?
The grant can be used to cover solicitor and/or conveyancing fees, registration fees, valuation and inspection fees (building and pest), lending institution lodgement fees and mortgage insurance premiums.
Who is eligible?
The current funding criteria are:
- You must be buying your first home, which needs to be either established or partially built. It can't be vacant land, a plan, or a "house and land package";
- You and your spouse or partner must not own or have previously owned any property (including investment property) in the State of Western Australia.
- You, as the applicant, must live in the home for the entire first twelve months or more;
- The property must be purchased through a licensed Real Estate Agent (and not privately through advertisement or family/friends);
- Application for the account must be lodged no more than 90 days after the date your offer to buy the home is accepted by the vendor;
- Home loans on the property must be financed through a bank, building society or credit union, not through private arrangements or other means;
- The purchase price must be under AUD$400,000.
How does this help me as an investor?
If you're interested in investing in rental property and aren't sure where to start, this account can be a useful boost if you are prepared to be patient. The rules about the length of time you must live in the house are set for longer than the First Home Owners Grant, so you have to plan to live in the property for the whole of the first twelve months that you own it.
There is no rule against renting spare bedrooms out to lodgers who aren't related to you, so clever use of this will enable you to pay down your loan a lot faster. This is especially true if you are paying the whole of your mortgage as rent yourself, and then adding the lodgers' rent on top of your regular repayments, to bring down the principal.
After twelve months, you are allowed to move out of the property and rent it out as an investment.
Visit the Western Australian Department of Commerce Page about the Home Buyers Assistance Fund
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