First Home Owners Grant (New Home) – (FHOG)
So your looking at purchasing a new home….There are several NSW Government grants that you should consider. The current scheme offers first home buyers a $15,000.00 grant and applies to new homes only. This grant will be reduced from the current $15,000.00 to $10,000.00 in 2016.
What is a new home? – A new home is:-
- One that has never been occupied by anyone, or sold as a residence;
- it includes homes purchased off the plan; or
- a contract to build a new home; and
- it also includes a home that has been substantially renovated or built to replace an exising demolished home.
The FHOG does not apply to vacant land.
If you are still unsure, then call Geoff Brazel on 4324 7699 to discuss the home you’d like to purchase.
To be eligible for this grant you must:-
- Be over 18.
- Be buying a new home (see above) valued at less than $750,000.00.
- Have a contract dated on or after 1/10/12.
- You and your spouse (including de facto) have never held a relevant interest in any residential property in Australia prior 1 July 2000. If you’ve held a relevant interest in a property on or after 1 July 2000 and you have not resided in that property for a continuous period of at lease 6 months, you may still be eligible for the grant.
- You have never received the First Home Owner Grant in any State or Territory in Australia.
- You are planning on living in the new home for a continuous period of at least 6 months.
- At least one applicant is an Australian citizen or permanent resident.
- All applicants are people, not a company or trust.
In addition to the grant described above, the Government also provides the first home buyers with exemptions from transfer duty on new homes valued up to $550,000.00 and concessions for new homes valued between $550,000.00 and $650,000.00.
The stamp duty exemption also applies to vacant blocks of land. If you’re buying a vacant residential block valued at up to $350,000.00 you will pay no stamp duty. If it’s valued between $350,000.00 and $450,000.00 you will still receive some stamp duty concessions.
The same eligibility criteria for the stamp duty exemption as described above for the FHOG applies.
New Home Grant Scheme
The NSW Government has always been supportive of stimulating the construction industry. This scheme was introduced on 1 July 2013 and grants eligible applicants $5,000.00 towards the purchase of their new home.
Unlike the grants above, any entity can apply for this grant (person, company, trustee of a trust) and there are no restrictions on the number of times you can apply for the grant. There is also no requirement that you have to occupy the new home and investors are also eligible for the grant. However, if you are purchasing a vacant block of land with the intention of building, then the building must commence within 26 weeks of the completion of the purchase. There is no time limit on completing the home’s construction.
To be eligible for this grant:-
- You must be over 18.
- You must be buying a new home (see above) valued at less than $650,000.00 or a vacant block of land valued at less than $450,000.00.
- You must not also be eligible for the FHOG.
- The agreement to purchase or transfer was entered into after 1 July 2012.
- Apply for the grant within 3 months of the date on the agreement.
- If the agreement is for a vacant block of land, it must be for the whole block, not part of it.
Geoff Brazel has over 33 years experience in taking care of all of the legal needs of Central Coast people. Form more information call 4324 7699.