Ask Greg all your real estate questions!
Q: I hear the first home owners grant has changed. What is happening now?
On October 1 this year, the First Home Owner Grant (New Homes) Scheme commenced. It replaces the previous grant of $7,000. This is a terrific NSW Government incentive, and if you are in a position to take advantage of it, my advice would be to ‘go for it’.
The scheme is designed to help first home owners realise their dream and help them on their way to owning a brand new home. A grant of $15,000 is available for eligible first home owners to either purchase or build a new home.
Stamp duty concessions are also available, providing exemptions to transfer duty on new homes valued up to $550,000 (saving up to $20,240).
For example, a first home owner who purchases land at $200,000 would receive full stamp duty exemption of $5,490 in addition to the $15,000 grant to build their new home. So the total benefit would be $20,490.
Considering today’s keen prices for land in our area, the timing is ideal for first home owners to really benefit by the additional incentives which have recently been introduced.
There are some home and land packages available in our area for less than $400,000, so in my experience, it has been a long time since the situation has been this good for first home buyers.
I should also mention that non first home owners, including investors, have not been forgotten. They can benefit by a grant of $5,000 to build a new home; however, no stamp duty concessions apply.
I recommend visiting www.osr.nsw.gov.au to obtain all the facts on the various schemes. If you’d rather give me a call, I’m happy to walk you through them.
Answers are general comment, and readers should always seek their own independent professional advice.
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Greg Trembath is Principal/Licensee at
Greg Trembath Real Estate.
Licensed Real Estate Agent – Licensed Auctioneer.