Did you know that there are four benefits currently available in NSW for first home buyers?
1. Transfer Duty Exemption/Concession
- Available to Australian Citizens or Permanent Residents only
- Full exemption from duty applies on the purchase of a home, up to $650k and vacant land up to $350k
- Concessional Duty applies on the purchase of a home between $650k and $800k and the purchase of vacant land between $350k and $450k
2. First Home Buyers Choice
First Home Buyers can ‘opt in’ to an annual property tax instead of paying
transfer duty:
- The value of the property must not exceed $1.5M for a home or $800k for vacant land,
- When purchasing a home, the property must be occupied as the Principal place of residence for a continuous period of 6 months, starting within 12 months of settling the purchase,
- When purchasing vacant land, the home intended to be the Principal Place of Residence must be commenced within 2 years of settling the purchase,
- An eligible person may buy in partnership with another person (other than their spouse) and opt-in for their share of duty only.
3. First Home New Home Grant (FHOG)
• A $10,000 FHOG is available to First Home Buyers when they buy or
build a New Home,
• For the purchase of a house, townhouse, apartment, unit, off-the-plan
purchase or a substantially renovated home, the maximum purchase
price is $600k,
• For the purchase of vacant land on which to build, the grant is payable
upon building and the combined price of the land and the building
must not exceed $750,000.
4. Shared Equity Home Buyer Helper
- Not only for First Home buyers, but available to Single Parents (with dependent children), Single People (50 years and over), First Home Buyers who are Nurses, midwives, paramedics, teachers, early childhood educators or Police officers,
- Gross income must not exceed $90k for a single person and $120k for couples,
- The Purchase price must not exceed $950k (Sydney and major regional areas, which includes North Coast of NSW) and $600k for other regional areas,
- Open to Australian citizens, permanent residents and New Zealanders,
- Deposit need only be 2% of the purchase price,
- Must prove inability to service the mortgage for full purchase price but ability to service the mortgage with the shared equity arrangement,
- All costs (including Transfer Duty, maintenance and outgoings) are payable by the participant,
- If the participant is a First Home Buyer, they are still eligible for any other benefits that may apply,
- The participant must use Bendigo bank as the Lender,
- NSW Government contribution will be up to 40% for a new home, and 30% for an existing home, with no repayments necessary but the participant may make voluntary payments to increase their share,
- Upon sale, the NSW Government with share in the proceeds proportionally.
Get in touch today with your local team on 02 6554 5011 or pop in to the office for a chat at 25 Manning Street, Tuncurry. A big thank you to the team at All About Conveyancing for the information regarding current benefits available to our First Home Buyers.
Disclaimer:
The following advice is of a general nature only and intended as a broad guide. The advice should not be regarded as legal, financial or real estate advice. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.