FIRST HOME BUYER GRANTS AND GRANTS FOR BUYING OR BUILDING A NEW HOME

FIRST HOME BUYERS

First Home Owner Grant (New Homes)

The First Home Owner Grant is now $15,000 and only applies to NEW homes costing up to $650,000.

From 1 January 2014, the First Home Owner Grant (New Homes) will reduce from $15,000 to $10,000.

It applies to first home owners buying or building a new home and who meet the following eligibility criteria:

• Each applicant is a natural person and not a company or trust.
• At least one applicant is a permanent resident or Australian citizen.
• Each applicant must be at least 18 years of age.
• All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.
• All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months.
• Each applicant has entered into a contract for the purchase of a new home or signed a contract to build a home on or after 1 October 2012. In the case of an owner-builder, laying of the foundations commenced on or after 1 October 2012.
• The total value of the property does not exceed the cap amount of $650,000.

 

First Home Buyer Stamp Duty Exemptions and Reductions

The First Home—New Home scheme provides eligible purchasers with exemptions on transfer stamp duty for new homes valued up to $550,000 and concessions on transfer stamp duty for new homes valued between $550,000 and $650,000.

Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $350,000 and will receive a concession on duty for vacant land valued between $350,000 and $450,000.

First Home—New Home exemptions or concessions do not apply to

the purchase of an existing dwelling.

• At least one first home buyer must be an Australian citizen or a permanent resident
• The agreement and /or transfer must be for the purchase of the whole of the property
• All purchasers must be ‘eligible’ purchasers
• At least one eligible purchaser must occupy the home as their principal place of residence for a continuous period of six months, commencing within twelve months of completion of the agreement. (Where an eligible purchaser was a member of the permanent forces of the Australian Defence Force and all eligible purchasers were enrolled on the NSW electoral roll as at the date of the agreement or transfer, on or after 21 October 2009, then all purchasers are exempt from this residency requirement.)
• The first home buyer/s must be purchasing at least 95% of the property

An ‘eligible purchaser’ is a natural person (i.e. not a company or trust) at least 18 years of age who has not, and whose spouse/de facto has not:

• at any time owned (either solely or with someone else) residential property in Australia other than property owned solely as trustee or executor
• at any time been the holder (either solely or with someone else) of a leasehold interest granted by the Commonwealth in residential property in the Australian Capital Territory
• previously received an exemption or concession under the First Home—New Home scheme.

 

Note: Even if not all the purchasers are ’eligible purchasers’ you may still qualify for a partial concession if the first home buyers are purchasing at least 50% of the property.

 

ALL BUYERS 

NSW New Home Grant Scheme

From 1 July 2012, the New South Wales government introduced a $5,000 grant to anyone buying a new home, whether off the plan or newly built, with a value up to $650,000.00 or to anyone buying vacant land valued up to $450,000 provided that they are intending to build a new home.

You must apply for the grant within three months of signing the Contract For Sale or the Transfer (where there is no Contract).

The  buyer under the scheme can be any entity, including a natural person, a company or a trustee of a trust and the Grant is available to investors as well as owner occupiers.

The Grant will usually be paid by applying the $5000 grant as a credit against the stamp duty liability for the purchase. However, if the total amount of stamp duty is paid, or there is a balance of Grant owing, a payment will be issued by cheque after completion of the purchase (i.e. the registration of the change of title with the Department of Lands).

We know the property business inside out. We are your one-stop property and lease shop.

 

If you have any questions on whether you are eligible for any First Home Buyer benefits please call Property Platinum Law.
For More Information Call Us Now On : 02 9627 7400