Now is a great time to be considering buying your first home! With legislation changing reasonably frequently, and different grants and packages available in different states of Australia, this article provides a summary of grants that a newbie home buyer may be eligible for in New South Wales.
Changes for first home buyers were introduced as part of the 2017 State Budget under the State Revenue and Other Legislation Amendment (Budget Measures) Act 2017. Importantly, as of this date, first home buyers do not have to pay stamp duty on both new or existing home for properties up to $650,000, and with stamp duty also being reduced for property purchase amounts between $650,000 and $800,000.
With respect to new homes and new builds, as of 1st July, 2017, first home owners can also access a $10,000 grant for:
– building a new home under a building contract when the combined land and building contract value does not exceed $750,000;
– a new home where the purchaser will be owner-builder and the combined land and building contract value does not exceed $750,000;
– purchasing a new home up to $600,000.
This scheme was set up to assist eligible first home owners to purchase a brand new home or to build, while at the same time assisting the construction market. The amount of money received is determined by the date of the eligible transaction. For a new home purchase, this is the date of the contract to buy or build the new home. If you are an owner-builder, this is the date that building works commence. A new home here is defined as a residential building that has never previously been occupied or sold to live in before… or is a significantly renovated property that otherwise would have previously been demolished.
Such government schemes and incentives are by no means new and while slightly less generous for new builds since 1st July, 2017, they have now reinstated the much needed stamp duty waiver for those purchasing existing property at the lower end of the property market! This is therefore great news for those seeking to buy established, pre-loved homes.