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?

  1. First Home Own­er Grant (New Home)

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:

  • Be a per­son — not a com­pa­ny or trust
  • Be a per­ma­nent res­i­dent or an Aus­tralia Cit­i­zen — unless you are a per­ma­nent mem­ber of the Aus­tralian Defence Force.
  • Be at least eigh­teen years of age.
  • You as an appli­cant or your spouse or de fac­to part­ner can have pre­vi­ous­ly owned a res­i­den­tial prop­er­ty joint­ly, sep­a­rate­ly or with some oth­er per­son in Aus­tralia and lived in it for more than 6 months.
  • You or your spouse / de fac­to can­not have received the grant before.
  • You or one of the appli­cants then need to occu­py the home as your prin­ci­pal place of res­i­dence for a con­tin­u­ous peri­od of six months com­menc­ing with­in twelve months from the date you are reg­is­tered on the title of the prop­er­ty. Unless of course if you are build­ing a new home — then that time peri­od starts from the con­struc­tion com­ple­tion date.

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.

  1. FIRST HOME BUYER’S ASSISTANCE SCHEME

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.

 

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