“You’ll save more money by owning a house than renting one” is a popular adage thrown around by the people in the real estate industry. However, renting becomes appealing again when the house prices fall because the major advantage of owning is gone.
Saving for a home loan deposit is usually the first step towards buying a home. But how much do you need? Why do you need a deposit at all? These are the type of questions that may torment first home buyers. So, let’s take a look.
The First Home Owner Grant, succinctly put as FHOG, is a substantial amount of cash available to first home buyers to encourage and assist with the cost of purchasing or building their first house. The Federal government introduced this first home buyers grant as a national scheme. However, the FHOG is funded by the states and territories, so the rules vary in each state. The first home buyers grant does not have to be repaid and is non-taxable, although there are caveats.