Are you thinking about buying your first home or do you intend to buy a vacant block of land on which you will build your first home in NSW?
The First Home-New Home Scheme provides an exemption of Stamp Duty for eligible purchasers who are buying their first home in NSW valued up to $550,000.00 and a Stamp Duty concession on Stamp Duty for new homes valued between $550,000.00 and $650,000.00. The exemption or concession only applies to brand new homes that have not previously been sold as residential premises or lived in prior to the current transaction.
A Stamp Duty exemption will also be offered to eligible purchasers buying a residential vacant block of land on which they intend to build their first home for land valued up to $350,000.00 and a concession on duty will be offered for land valued between $350,000.00 and $450,000.00.
The First Home-New Home exemptions and concessions do not apply to the purchase of an existing dwelling.
First Home Owner Grant
First home buyers with a contract dated on or after 1 October 2012 may also be eligible for a $15,000.00 grant. On 1 January 2016 this grant will reduce to $10,000.00 for eligible transactions dated on or after that date. The purchase price cap is currently $650,000.00.
If you are buying a vacant block of land to construct your first home you may also be eligible for this grant. The total cost of the land and the construction of the dwelling cannot exceed $650,000.00 to be eligible. There is no time limit for construction of the dwelling.
NSW New Home Grant Scheme
As and from 1 July 2012 a $5,000.00 grant is available to anyone (including Companies, Trusts, investors and owner occupiers) buying a new home (whether newly built or off the plan) with a value up to $650,000.00 and also to buyers of vacant land (valued up to $450,000.00) on which it is intended to construct a new home. Construction must commence with the laying of foundations within 26 weeks after the agreement or transfer is completed.
Applications for the grant must be made within three months of the date of the agreement or the date of the transfer where no agreement exists.
Further information regarding Stamp Duty Exemptions, Concessions and Grants may be obtained from www.osr.nsw.gov.au or by contacting our office.
This article is general information only and should not be relied on without obtaining further specific information.
Author: Karen Lewin