Changes Ahead for First Home Buyers

Posted on August 28th, 2012 · Posted in News

The NSW Government have just announced some changes to the First Home Owners Grant effective from the 1st of October 2012.

There are some pros and cons you should be aware of, but in a nutshell, you will need to purchase a new home or off the plan to cash in on theses Government handouts.

The pros:

  • The grant will increase from $7,000 to $15,000 from October 1, 2012 to December 31, 2013 and to $10,000 from January 1, 2014.
  • If you are in the market for your first home and you spend between $550,000 to $650,000 on a new property or off the plan, then you can look forward to a helping hand of up to $35,240 in government handouts.

The cons:

  • From October 1, 2012, the first-home owner grant scheme as you know it will be replaced by the first home owner grant (new home) scheme.
  • Unfortunately this incentive only applies to first home owners who purchase or build a new home valued at up to $650,000.
  • If you are buying an existing property you will receive nothing.

There is some good news for other buyers in the market. From July 1, 2012, a new $5,000 grant will be provided to buyers of new homes, whether off the plan or newly built, with a value up to $650,000 and to buyers of vacant land that is intended to be the site of a new home valued up to $450,000. Note, you do not need to qualify as a first home owner to be eligible for this incentive.

The grant is targeted at all non-first home buyers and is available to investors as well as owner-occupiers. The grant will be administered through the transfer duty payment process.

Make sure you give us a call if you aren’t sure of the incentives you may be able to receive. We’ll take a look at what you can afford, and how much of the Government incentive you would likely be entitled to.