There has been a lot of discussion lately about the ability of a first home owner to be able to break into the property market. It can be out of reach for many. Stamp duty is an additional expense that can make home ownership seem like a dream. In this blog we have a look at the government incentives available for first home owners. So what exactly is available?
First Home Owner Grant (New Homes) Scheme
This scheme was introduced to help the first home owner enter the property market and purchase a new home. The Grant is currently $10,000. It is available for people buying new homes up to $600,000. It is also available for contracts to build a home up to $750,000.
A new home means a home that has never been sold as a residential property before or has not been previously occupied. It includes a home that has been substantially renovated.
Are You Eligible?
There are strict requirements to fulfill for eligible purchasers:
- You have to be over the age of 18.
- The purchaser has to be a natural person that is, not a company or trust.
- You need to live in the home for six months.
- One of the first home owners has to be an Australian citizen or permanent resident.
- You or your partner cannot have held an interest in property previously,
- And of course, the home has to be new.
How do I apply?
There are two ways to apply for the First Home Owner Grant. One way is through your bank when you apply for your home loan. The Grant will then be available for you at settlement.
The other way is to apply directly to Revenue NSW. There is a form and documentation that needs to be provided. You are able to apply when the home is complete and in your name.
First Home Buyers Assistance Scheme
This scheme was introduced to assist first home owners get into the property market by offering exemption and reduction of stamp duty. Because of the scheme the savings can be a lot. No stamp duty is paid on properties valued up to $650,000. Concessions or reduction of stamp duty is available for properties valued between $650,000 and $800,000. The home can be new or existing. If the home is new you are also able to claim the First Home Owner Grant.
The Scheme is also available for the purchase of vacant land where you intend to build your home. To claim the full exemption the purchase price of the land has to be under $350,000. Where land is valued $350,000 to $450,000 concessions are available.
Am I Eligible?
Like the First Home Owner Grant there are requirements you need to fulfill which include:
- You need to be a natural person, that is not a company or trust.
- The purchaser needs to be over the age of 18.
- You or your partner cannot have owned residential property in Australia. This applies even if your partner is not purchasing the property with you.
- You will also need to live in the property for six months. This six months has to start within 12 months of purchasing the property.
- One of the purchasers has to be an Australian citizen or permanent resident.
How Do I Apply?
An application for exemption or concession needs to be processed by settlement or within three months of the Contract date, whichever occurs first.
Here at Sharpe Legal and Conveyancing we are a registered agent for processing these applications and can assist you with your application. Contact our office today on (02) 4605 1501 to see how we can assist you.