First Home Owner Grants
First home buyers are the biggest winners in today’s market.
First home buyers receive a cash amount of $10,000.00 per transaction provided they have never owned a property in Australia and contracts are entered into after 1 January 2016.
The NSW Government currently offers exempt stamp duty on First Home New home purchases up to $550,000.00 leaving a saving of $20,000.00. Office of State Revenue also offers a concession for properties priced between $550,000.00-$650,000.00.
There is also a First Home stamp duty exemption on vacant land to the value of $350,000.00 and a concession offered for land between $350,000.00-$450,000.00. The $10,000.00 grant is also issued during construction stage or can be issued on completion of the home at the client’s request. Please refer to Office of State Revenue for building guidelines.
This means that new home buyers can essentially be saving up to $30,000.00 upfront on their first home which is already placing them in the driver’s seat to success in the property market.
The most common issue that first home buyers face is saving that initial 10% deposit however guarantor loans have taken the market by storm with parents offering their property equity as security against the loan meaning that a full 10% deposit is not required. Further information can be found on our latest blog - Guarantor Loan Application.
When is the grant paid?
The grant is paid on or after settlement of a new home purchase. If you purchase vacant land to build then the grant is paid with the base stage progress payment or on completion of the dwelling.
Can the $10,000.00 grant be used towards settlement?
Yes, banks can arrange for these funds to be available on or after settlement takes place. These funds cannot be accessed prior to settlement.
What do I have to do?
You will be required to sign the relevant paperwork which is issued by either our office or your bank and provide identification. The stamp duty exemption form will be provided by your solicitor.