By Scott Williams
(NB These benefits were current as of May 2018).
If you or someone you know is looking to enter the property market for the first time, there are currently two benefits available to eligible first home buyers in New South Wales.
These two benefits are applicable for those purchasing or building a new home or looking for assistance in purchasing an existing home.
For the purpose of this legislation a ‘New Home’ is defined as a home that has not been previously occupied or sold as a place of residence. It also includes a home that has been substantially renovated.
Substantial renovations are defined as renovations in which all, or substantially all, of a building is removed or replaced. So think; removal or replacement of foundations, external walls, floors, roof or staircases. Renovations of part of a house, for example updating a kitchen or bathrooms, don’t constitute as substantial renovations for the purposes of eligibility for the Grant.
If a home has been built to replace a demolished premise - this may also be eligible or a grant.
So exactly what is available and to whom?
Funded by the NSW Government and administered by Revenue NSW (formerly known as the Office of State Revenue), a $10,000 grant is available to first home buyers building a new property worth up to $750,000.
First home buyers purchasing a new property worth up to $600,000 will also be entitled to the $10,000.00 grant.
If you are looking to qualify for the First Home Owner Grant (New Homes) you must adhere to the following criteria:
In addition to meeting the above you will also be required to provide a number of proof of identity documents such as Birth Certificate, Drivers Licence and Medicare Card.
If you were born overseas you will be required to provide a certified copy of your foreign passport and current Australian Visa or Citizenship Certificate.
This commenced on 1 July 2017 and provides an exemption from stamp duty to new home purchasers either buying a newly constructed home or a pre-existing home up to a value of $650,000.
The previous form of this stamp duty exemption was applicable only to first home buyers purchasing a newly constructed house.
Concessions on the stamp duty payable for homes between $650,000 to $800,000 also apply to eligible purchasers.
First home purchasers buying vacant land to build their home on will pay no stamp duty on the vacant land up to $350,000 and concessions on duty payable applying on land valued between $350,000 and $450,000.
The same eligibility criteria and identification requirements apply as for the First Home Owner Grant (New Homes).
How to apply for First Home Assistance
Applications can be made either through your bank or directly with Revenue NSW.
If you require any assistance in the conveyancing of your house purchase, we would be happy to help.