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/
