We are often asked by purchasers who are buying their first home about the concessions and assistance offered by the NSW State Government to first home owners to help them enter the property market.
There are currently two schemes that came into effect on 1 July 2017; the First Home Buyers Assistance Scheme and the First Home Owner Grant (New Homes) Scheme.
First Home Buyers Assistance Scheme
The First Home Buyers Assistance Scheme offers eligible buyers exemptions or concessions on property transfer duty. This includes an exemption from stamp duty for homes valued up to $650,000 and concessions on duty for homes valued between $650,000 and $800,000.
If you are buying a vacant block of residential land to build a home, you will pay no duty on the land valued up to $350,000 and will receive a concession on duty for land valued between $350,000 and $450,000.
First Home Buyers Assistance Scheme: http://www.revenue.nsw.gov.au/grants/fhba
First Home Owner Grant (New Homes) Scheme
The First Home Owner Grant (New Homes) Scheme applies only to those buying new homes and provides eligible purchasers with $10,000 to go towards purchasing or building a new home. This applies to anyone with an eligible transaction occurring after 1 January 2016.
If the eligible transaction occurred between 1 October 2012 – 31 December 2015, then the grant amount is $15,000.
The First Home Owner Grant for new home purchases, where you buy an existing new home or enter a contract to build, is capped at $600,000. If you are an owner builder, the total value cannot exceed $750,000.
A new home is defined as being a home that has not been previously occupied or sold as a place of residence.
First Home Owners Grant (New Homes) Scheme: http://www.revenue.nsw.gov.au/grants/fhog
Eligibility Criteria and How to Apply
Generally, for both schemes, you’ll need to satisfy the following (among other criteria) to qualify:
- Each applicant is a natural person (eg not a company)
- At least one applicant is a permanent resident or an Australia citizen
- Each applicant must be aged 18 years or older
- All applicants have not owned a residential property in Australia before July 2000
- All applicants have not previously owned a residential property for a continuous period of at least six months
- All applicants have not previously received a grant under the First Home Owner Grant Act 2000 in any state or territory
- At least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months
If you meet the eligibility criteria, your solicitor or conveyancer will assist you in making the necessary applications as they apply to you as part of the conveyancing process.
We are always happy to discuss the schemes with you in more detail, however, we do recommend asking your solicitor or conveyancer any questions you have about the schemes.
Information sourced from NSW Government Revenue and finder.com.au.