Thinking about buying your first home in the festival state? South Australian homes are the fourth most expensive in the nation with a median home in Metropolitan Adelaide costing $700,000.
Such prices make getting on the property ladder a challenge for first home buyers.
This is especially true amid rising costs of living and interest rates. In January 2023, owner-occupier first home buyer loans fell to a five-year low, according to the ABS.
The South Australian government offers grants and incentives to help first buyers enter the property market sooner. Here’s everything you need to know about South Australia’s first home grants and concessions.
To summarise, South Australia first home owner grants and concessions include the following:
In South Australia (SA), eligible first home buyers can receive a once-off $15,000 First Home Owners Grant when buying or building a new home valued under $650,000.
To be eligible for a FHOG in South Australia, recipients must meet the following criteria:
The market value of your property cannot exceed $575,000 where the contract was entered into between 2010 and 14 June 2023. For contracts entered 15 June 2023 onwards, the value is up to $650,000.
The grant can apply to vacant blocks of land provided a home will be built on there and the combined value does not exceed the above thresholds.
There are no further rules on how to spend SA FHOG so some buyers choose to use it towards their deposit.
A UNO broker can help determine your eligibility for FHOG and guide you through the application process.
South Australian First Home Owner Grant is a scheme co-funded by the state and federal governments aimed at helping promote homeownership for first-time buyers.
Announced in the 2023-24 state budget, eligible first home buyers enjoy no stamp duty on new homes valued under $650,000 and concessional rates on homes valued up to $700,000.
Eligible buyers of vacant land pay zero stamp duty on land valued below $400,000 or reduced stamp duty on land worth $400-450,000.
Concessional stamp duty relief rates. Source: Revenue SA.
Property ValueStamp DutyStamp Duty ReliefPayable$660,000$30,130$24,104$6,026$670,000$30,680$18,408$12,272$680,000$31,230$12,492$18,738$690,000$31,780$6,356$25,424$700,000$32,330$0$32,330
Contracts need to be entered into after 15 June 2023 and eligibility depends on the above FHOG criteria.
Stamp duty is a state government tax on certain transactions and documents such as housing and vehicles.
HomeStart is a State Government lender focused on providing home loans for South Australians, including flexible home loans for first home buyers.
They offer a range of loan options including low (2-5%) deposit loans, loans for graduates with a Certificate III or higher and shared equity options.
UNO has access to HomeStart Finance. A UNO broker can help navigate your options with this lender plus over 20 others.
South Australian first home buyers who earn less than $75,000 as individuals (or $100,000 for couples) can access a $10,000 interest-free starter loan through HomeStart.
The Start Loan is interest-free for seven years with no repayments needed during this period.
It is a secondary loan atop of your HomeStart home loan to help with the upfront costs of home ownership including construction costs.
If the loan isn’t paid off within seven years, the balance will be reviewed and possibly transferred onto your primary loan balance.
Introduced in the 2019 South Australian State Budget, the Start Loan is supported by the Affordable Housing Fund.
You can read more about the Starter Loan here.
Saving a large deposit can be a huge challenge for South Australian first buyers. While a deposit of 20% is preferable to avoid lender’s mortgage insurance (LMI), some lenders accept lower deposits.
A low deposit might help you get into your first home sooner. In South Australia, there are many options for low deposit home loans including the following:
A UNO broker can compare from over 20 lenders to find a loan structure suitable for your needs.
Read more: How much deposit do I need?
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