Get In First
Tuesday, 10 February 2015 12:00 AM
GET IN FIRST
Signing the contract on your first home is one of the most exciting times in your life. But before you reach this milestone, there are a few important things to consider. One of the biggest decisions you will need to make is whether to buy an established property or build a brand-new house.
Building a new home allows you to design a property that is suited to your individual lifestyle and tastes, and will also require less maintenance in the short to medium term. Best of all, right now the government provides financial assistance to first-time buyers looking to purchase a brand-new home.
The NSW State Government’s First Home - New Home scheme commenced on 1 January 2012 and provides eligible purchasers with exemptions from transfer duty on new homes valued up to $550,000. The scheme also includes concessions for new homes valued between $550,000 and $650,000.
If you are building a new home on a vacant block of residential land valued up to $350,000, you may be eligible for an exemption; for vacant land valued between $350,000 and $450,000 you may be eligible for concessions.
In addition to these duty concessions, if you are a first-home buyer who signs a contract on or after 1 July 2014 (and the value of your new home does not exceed the First Home Owner Grant Cap of $750,000) you may also be eligible for a $15,000 grant.
The amount of the grant will reduce to $10,000 from 1 January 2016, so if you are thinking of buying or building a new home 2015 is the right time. Eligibility criteria can be found on the NSW Office of State Revenue site: http://www.osr.nsw.gov.au/grants/fhnh. Your financial institution or mortgage broker can also assist with advice on your eligibility and application process.