NSW First Home Buyers: Your essential guide to the First Home Owners Grants (2016) - Pearl Financial

NSW First Home Buyers: Your essential guide to the First Home Owners Grants (2016)

By Shane | First Home Buyer

May 25

This information was current at the time of writing (May 2016). Check out these articles for the latest info:

NSW First Home Buyers Assistance Scheme

The NSW First Home Owner Grant (New Homes) Scheme

Purchasing your first property can be a daunting experience. Especially when it is likely to be the biggest purchase of your life so far. Understanding what assistance the government is willing to give you is essential to be prepared for your purchase. Be aware though, the rules are slightly different in each State and Territory so be sure to do your research before you dive in.

There is no easy way to put it, buying your first home can be hard work. You’ve got to work and save hard to get a deposit, search for your future home, and source the most appropriate finance for your situation. Though it can seem difficult, it is also a very exciting time.

One of the current benefits of being a first home buyer is that the government is willing to give you access to grants and subsidies if you meet certain criteria. Lets have a look at the First Home Owner Grant, or FHOG in industry lingo, in New South Wales.

In New South Wales, first home buyers have access to a range of grants and subsidies, as long as certain criteria are met.

The First Home Owner Grant (New Homes) Scheme provides a $10,000 grant to eligible first home buyers to purchase a new property or build their new home. There are two main criteria that need to be satisfied in order to access the grant. The value of the new property can’t be above $750,000, the applicants must never have previously owned property, and at least one of the applicants will need to live in the property for a continuous period of 6 months. If you were fortunate enough to have purchased the property before 1st January 2016 (i.e. between 1st October 2012 and 31st December 2015) you would have received a grant of $15,000…

Another bonus is that under the First Home – New Home Scheme first home buyers are exempt from stamp duty on new homes valued up to $550,000. If the new home is valued between $550,000 and $650,000 the new home owner will still receive stamp duty concessions.

Vacant land can also receive grants, however the value must be below $350,000 for the full stamp duty exemption or between $350,000 to $450,000 to receive concessions.

In all cases, make sure you seek out professional advice when entering the property market.

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About the Author

Shane specialises in helping Gen Y professionals and business owners make an impact by accumulating more assets, generating more income, and having more time to enjoy life. He has a Master of Applied Finance, an MBA, and a Master of Financial Planning. He is also a terrible golfer.

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