Financial Grants Available for First Home Buyers
There are significant changes coming in the concessions available for first home buyers. If you’re a first home buyer, there is still good news as the Government is continuing to offer a boost for your hip pocket.
The key to maximising the benefits available is knowing exactly what you’re entitled to – and for how much longer.
In New South Wales, eligible first home owners can receive the First Home Owner Grant (FHOG) of $7000 to assist them in the buying or building of their first home, regardless of income or the area in which they plan to buy or build. A cap of $835,000 on the value of the home has been in place since 1 January 2011. Only one grant is payable per purchase, regardless of the number of eligible applicants involved in the transaction.
The First Home Plus Scheme, is a NSW Government initiative providing exemptions or concessions on transfer duty for eligible first home buyers. Homes up to the value of $500,000 are exempt from the tax, while homes valued between $500,000 and $600,000 receive a concession. In total, First Home benefits of up to $24,990 ($7000, plus a duty exemption of up to $17,990) are available.
From 1 January 2012, the First Home Plus Scheme will be replaced by the First Home – New Home Scheme. Under this, stamp duty concessions will only be available to first home buyers purchasing a brand new home or vacant land intended to be used as the site for a first home. Buyers of established properties will no longer receive the transfer duty exemption or concession as of 1 January 2012. For more information, visit www.osr.nsw.gov.au