If you’re a first home buyer in NSW, find out what grants and concessions may be available to you if you’re eligible for the First Home Owner Grant (FHOG).
Under the FHOG in NSW, there are several schemes which have been developed to help first home buyers get into the property market sooner: The First Home-New Home Scheme, the First Home Owner Grant (New Homes) Scheme, and the New Home Grant Scheme.
Below we outline the different schemes available for NSW first home buyers to help you decide which one might be relevant for you.
The first home owner grant (FHOG) in NSW
The current FHOG, called the ‘First Home Owner Grant (New Homes) Scheme’ applies only to those buying new homes, and provides eligible purchasers with $10,000 to go towards purchasing or building a new home. This applies to anyone with an eligible transaction occurring after 1 January 2016.
If the eligible transaction occurred between 1 October 2012 – 31 December 2015, then the grant amount is $15,000.
To be eligible for the FHOG, the value of the home cannot exceed certain cap amounts:
First Home Buyers Assistance scheme
The First Home Buyers Assistance Scheme commenced from 1 July 2017. The scheme offers eligible buyers exemptions or concessions on property transfer duty. This includes an exemption from stamp duty for homes valued up to $650,000 and concessions on duty for homes valued between $650,000 and $800,000.
New homes
If you want to estimate the concession on a new home valued between $650,000 and $800,000, take the purchase price and multiply it by 21% then subtract $136,510.
The table below outlines the duty concessions available for new homes:
(Source: The NSW State Office of Revenue)
Vacant land
The First Home-New Home scheme also provides a duty exemption on vacant land valued up to $350,000 and concessions for vacant land valued between $350,000 and $450,000.
Eligibility for FHOG
Your eligibility for the FHOG is determined by the conditions of the individual scheme, the property value and the date in which you entered into the eligible transaction.
Generally, you’ll need to satisfy the following (among other criteria) to qualify:
- Each applicant is a natural person (e.g. not a company)
- At least one applicant is a permanent resident or an Australian citizen
- Each applicant must be aged 18 years or older
- All applicants have not owned a residential property in Australia before July 2000
- All applicants have not previously owned a residential property for a continuous period of at least six months
- All applicants have not previously received a grant under the First Home Owner Grant Act 2000 in any state or territory
- At least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months
To find out if you’re eligible for the FHOG, please visit the NSW State Office of Revenue and review the eligibility requirements for the scheme you’d like to apply for.
How to apply for the FHOG
If you’d like to apply for the FHOG, you can do so through your financial institution or through NSW Office of State Revenue.
Keep in mind that you can only lodge an application with NSW Office of State Revenue once you are registered on the property title.
By: Finder.com.au
