First Home and Non-First Home Buyers: What's in it for me?

Changes were made to the NSW first home owners grant and stamp duty concessions. We look at how these changes will impact first home and Non first home buyers.

I am a FIRST HOME BUYER and would like to buy a new home. What benefits do I get?

Government Grants
From the 1st of October 2012 the previous $7,000 first home owner grant was replaced with the $15,000 First Home Owners Grant (New Homes) scheme (FHOGS). The grant applies to both newly acquired and newly built properties where the contract date of purchase was entered into on or after 1 October 2012. Please note in order for the property to be considered "new" it must be a first time sale and never been lived in. It is intended that this scheme will assist first home owners to purchase their first home.

To be eligible, the applicant must be a natural person at least 18 years of age and occupy the property as their principal place of residence for a continuous period of 6 months within the first 12 months of acquiring the property. Although the grant is not means tested, there is a cap placed on the value of the property to be eligible. On the 1 October 2012 the property value cap dropped from $835,000 to $650,000. The $15,000 grant is set to drop to $10,000 from 1 January 2016.

Stamp Duty Concessions
First home buyers acquiring a new home also receive stamp duty relief. From 1 July 2012 full stamp duty exemption on homes valued up to $550,000 will apply. The concessions will phase out completely for homes valued over $650,000.

The stamp duty exemption also applies to vacant land where the intended use is to construct your new home. From 1 July 2012 the full stamp duty exemption on vacant land is $350,000. These concessions will phase out completely for vacant land valued at over $450,000.

If you satisfy for the First home owner grant and stamp duty exemption you can receive a total saving of $35,240 ($15,000 government grant and stamp duty exemption of $20,240 on a $550,000 property value).

I am a NON-FIRST HOME BUYER (property investor). What benefits do I get?

Government Grants
From 1 July 2012, a $5,000 grant will be available to investors and owner occupiers 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. The purchaser can be any entity, including a natural person, company, trustee of a trust. There are also no restrictions on the number of times a purchaser can apply for the grant. In addition there is no requirement for the applicant to live in the property.

This measure was introduced by the government to stimulate the construction of new homes in NSW.

Stamp Duty Concessions
Stamp duty concessions only apply to first home buyers.

For further information on NSW government grants and stamp duty concessions, please contact us.