First Home Buyers Benefits Updates
There have recently been three important announcements in the regime affecting first home buyers in NSW. A summary of these changes is set out below.
NSW New Home Buyers Supplement
First home buyers in NSW who qualify for the First Home Owner Grant (“FHOG”) and are buying a newly constructed home or building their first home will be eligible for an additional $3,000 payment known as the NSW New Home Buyers Supplement.
The $3,000 New Home Buyers Supplement is in addition to the $7,000 FHOG and the Australian Government’s $14, 000 First Home Owner Boost. With all benefits combined, first home buyers of new homes will receive maximum benefits of up to $24,000.
Commonwealth’s First Home Owner Boost
The Australian Government has announced a First Home Owner Boost, which supplements the NSW Government funded FHOG Scheme. According to the announcement from the Commonwealth:
• first home buyers who purchase established homes will receive a boost of $7,000 that will double the grant to $14,000
• first home buyers who build a new home or purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000.
Importantly, the boost payable by the NSW and Federal Governments for first home buyers who are building or buying a new home does not only apply to “brand new or newly built homes” but will also apply where a home has been substantially renovated provided that the home has not, since being substantially renovated, been occupied or sold as a place of residence.
First Home Owner Grant Property Value Cap
Effective from 1 July 2009 (subject to Federal Government approval) the First Home Owner Grant will be capped and only be available for properties valued up to $750,000.
Important Dates
At this stage, the First Home Owner Boost Scheme is due to expire on 1 July 2009.
If you are a first home buyer thinking of buying a property and you have any questions about your elibigility for the FHOG or the First Home Owner Boost Scheme or about conveyancing for first home buyers please do not hesitate to contact us here at clickconveyancing.
You can see more details at http://www.osr.nsw.gov.au/benefits/first_home/
The Role of a Conveyancer When Acting for a Buyer
In the last instalment of my blog, I outlined the role of a solicitor when acting for the buyer.
The role of a solicitor or conveyancer when acting for a buyer in conveyancing is basically as follows:
To obtain instructions from the client about the property being purchased, the source of finance or funds to purchase the property, and any special arrangements agreed with the seller or vendor eg early access to the property prior to settlement, a deposit of less than 10% etc
To review the proposed contract for sale on behalf of the purchaser to ensure that it reflects the agreement reached between the parties. It is also necessary for the solicitor to check the title documents contained within the contract and to ensure that the contract does not contain any onerous provisions.
- To give advice to the purchaser as to the contents and meaning of the contract
- To order any pest and building or strata inspections required by the buyer
- To liase with the buyers lender to ensure that the finance is approved
- To arrange for an exchange of contracts for sale ie this is a physical swap of the contract for sale signed by the seller with an identical contract signed by the buyer.
- To conduct all of the post exchange searches and checks with respect to the property and its title
- To send requisitions on title to the seller’s solicitor and to respond to any correspondence sent by the seller’s solicitor
- To deal with any problems or difficulties which might arise during the settlement period eg a default by the seller, damage to the property, problems with loan documents. When these arise they can be very stressful and it is important that you select a competent solicitor who will act in your best interests in a timely and effective manner
- To arrange for the settlement of the purchase
- To report to the purchaser at all stages of the transaction.
Importantly, you should note that it is not your solicitor or conveyancers job to assist you in:
- Assessing the value of the property you wish to purchase. Solicitors are not qualified to assess the value of a property or to provide you with investment advice. Any solicitor who purports to do so should be avoided!
- Determining the merits or problems identified in building and pest reports. Solicitors are not qualified builders or pest inspectors and should not be expected to provide advice about technical building matters.
At clickconveyancing, we employ experienced solicitors who are passionate about property and conveyancing. We have become experts at servicing clients buying property as is evidenced by our glowing conveyancing testimonials.
Conveyancers and Solicitors in the Property Selling Process
The role of a solicitor or conveyancer in conveyancing will vary depending on whether they are acting for the buyer or for the seller.
The role of a solicitor or conveyancer when acting for a seller in conveyancing is basically as follows:
- To obtain instructions from the client about the information needed to prepare a contract for sale
- To prepare a contract for sale and send that to the seller’s agent. In NSW it is illegal to market a residential property for sale without a draft contract for sale being available for inspection by prospective purchasers.
- To negotiate amendments to the contract for sale which might be requested by a buyer or their solicitor after taking instructions from the seller
- To arrange for the contract for sale to be signed by the seller
- To arrange for the an exchange of contracts for sale ie this is a physical swap of the contract for sale signed by the seller with an identical contract signed by the buyer.
- To ensure that a deposit is paid by the buyer at the time of exchange of contracts for sale. The deposit is usually for 10% of the purchase price although it is not uncommon for the deposit amount to be reduced to 5% of the purchase price or for a deposit bond to be used
- To arrange for a discharge of any mortgage over the property
- To answer any requisitions and other correspondence sent by the purchaser’s solicitor
- To deal with any problems or difficulties which might arise during the settlement period eg a default by the purchaser. When these arise they can be very stressful for the seller and it is important that you select a competent solicitor who will act in your best interests in a timely and effective manner
- To arrange for the settlement of the sale
- To report to the seller at all stages of the transaction.
At clickconveyancing, we employ experienced solicitors who are passionate about property and conveyancing. We have become experts at servicing clients selling property as is evidenced by our glowing conveyancing testimonials.
In the next article, I will outline the role of a buyers solicitor in conveyancing.
What is Conveyancing?
One of the first questions a lot of first home buyer clients ask me is “What is conveyancing and what do solicitors do in the conveyancing process?”.
To put it simply, conveyancing is the process by which real property is legally transferred from one person to another. In Australia, the owner of real property is “registered” as the owner of the property with the relevant State Government land department. The effect of being noted as the “registered” owner of real property is that no-one can steal your property or otherwise be entitled to claim ownership of your property. Read more
Potential First Home Buyers Beware!!!
If you are buying a property and plan on claiming the First Home Buyers Grant or First Home Plus stamp duty concession you should ensure that you meet ALL of the relevant criteria to qualify for the benefits. Applicants for first home buyers benefits are required to sign a declaration that they meet all of the necessary criteria for the grant and stamp duty exemption. Read more
