1. First Home Owner Grants: Not as Simple as They Seem
The First Home Owner Grant is a long-standing government initiative, but every state has its own eligibility rules. A key condition is that buyers must live in the property for a minimum period—typically at least six months within the first year of ownership, and sometimes twelve months. However, complications arise when buying a tenanted property, as leases must be honoured and can delay your move-in date, potentially invalidating your eligibility.

Key takeaway: Don't assume you can just "kick the tenants out." Make sure the lease terms align with your grant timeline and check the relevant authorities to see if there's a grace period.

2. Build Bonus Grants and Tight Timeframes
The federal government's build bonus grant was introduced in 2020 to stimulate the economy—but with strict deadlines for contract signing and construction commencement. Although well-meaning, grants with deadlines add pressure and require you to act fast, potentially before you're ready.

Key takeaway: Short deadlines can force rushed decisions. Only pursue these if you've done your homework and are financially prepared.

3. Deposit Guarantee Scheme: Proceed with Caution
This scheme allows eligible first home buyers to purchase with just a 5% deposit, avoiding the cost of Lenders Mortgage Insurance. Sounds great, right? It can be, but only if you're buying a solid, investment-grade property. If the value of your home falls, you risk negative equity—and the bank won't be happy.

Key takeaway: Use the scheme only if you're confident in the property's value and your ability to repay. Steer clear of brand-new apartments.

4. Why Brand New Properties Come with Risks
Many government grants and incentives are skewed towards brand new properties to support the construction industry and encourage supply—not because they're better investments. In reality, new properties often come with inflated prices and limited scarcity, making capital growth difficult. Plus, hidden traps like developer cashbacks obscure the real sale price, skewing market data.

Key takeaway: Don't be seduced by government or developer "help." Focus on long-term value, not short-term perks.

5. Stamp Duty Concessions: State-Based but Stringent
Stamp duty concessions vary wildly across states and territories in Australia. Some, like in Queensland, allow concessions on established homes. Others, like in New South Wales, offer greater savings on new properties. The rules around price thresholds, timeframes, and property types are complex—and frequently change.

Key takeaway: Always check the latest official sources (both federal and your state or territory) and weigh up whether the concession is worth the property compromise.

6. Stamp Duty Caps Can Create Price Bottlenecks
Many buyers limit themselves to staying under the concession price cap. This can artificially inflate prices at those thresholds and lead to fierce competition for subpar properties. In contrast, going slightly over the cap may deliver significantly better value—even after paying stamp duty.

Key takeaway: Don't sacrifice quality just to avoid a tax. A better property may offer greater long-term value, even with upfront costs.

7. Developer Discounts: When Free Money Isn't Free
Some developers offer cashbacks—say, $20,000 after settlement—to entice buyers. But this tactic inflates the advertised sale price, helping the developer justify higher prices to the next buyer. You may think you're getting a bargain, but you're likely overpaying.

Key takeaway: Be sceptical of any "gift" offered after settlement. These tactics are simply sales ploys and reduce transparency.

8. First Home Super Saver Scheme: A Tax-Smart Strategy?
The First Home Super Saver Scheme allows voluntary contributions to superannuation to be withdrawn later for a home deposit. While potentially tax-effective for high earners, it's complex, capped at $30,000, and comes with strict withdrawal and usage timelines.

Key takeaway: Only consider this with guidance from a qualified financial advisor or your accountant.

9. Be Strategic with Timing and Residency Rules
Most grants require you to live in the property for a minimum period. Get this wrong, and you may have to repay the grant—often with penalties. Similarly, buying with a tenant in place may delay your move-in date, so consult an expert first.

Key takeaway: Understand your state's timelines. Get advice before committing, especially if buying an occupied home.

10. Don't Let "Free Money" Dictate Your Buying Strategy
Veronica and Meighan stress this throughout the episode: never let a grant or incentive override your property strategy. Choosing a poor-quality asset just to get a few thousand dollars back can cost you far more in the long run through poor capital growth or costly exits.

Key takeaway: Your asset choice will shape your financial future—choose wisely, not hastily.

11. Rushing to Buy Creates Risky Behaviour
Incentive expiry dates and pre-approval windows create artificial urgency. Many buyers feel pressured into rushing their decision just to "make the cut." This can lead to panic buying, buyer's remorse, and ultimately poor investments.

Key takeaway: If the clock is ticking, pause. Missing a grant is better than buying a dud.

Final Thoughts: Know Who the Incentives Really Benefit
Government grants and incentives are often more about economic stimulation than supporting first home buyers. That doesn't mean you can't benefit—but you need to be aware of the risks. Veronica and Meighan urge you to build your knowledge, question everything, and always prioritise the quality of your purchase over the lure of "free" money.

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