First Home News

First Home buyers take note:

First Home Buyer Stamp duty exemption/concession

After 1 July 2012, first home buyers will only be eligible for stamp duty exemption/concession if they purchase new homes/off the plans or vacant land where a new property is to be built. Under the previous scheme, stamp duty exemptions/concessions are eligible across all purchases, whether existing or off the plan.

Effective from 1 July 2012, under the NSW First Home – New Home Scheme, First Home buyers will be eligible for:

1. Full stamp duty exemption if the purchase price:
   1. for new homes is < $550,000; or
   2. for vacant land is < $350,000;
   3. stamp duty concession if the purchase price:
      1. for new homes is > $550,000 and < $650,000; or
      2. for vacant land is > $350,000 and < $450,000.

New home purchases exceeding the above caps will be liable for full stamp duty.

To be eligible for the scheme, eligible purchases (including their spouse/de-factor partner) must

• have not at any time owned (solely or jointly) residential properties in Australia;
• have not previously received an exemption/concession under the scheme;
• at least 1 eligible purchaser must be an Australian Citizen/Permanent resident; and
• the residency rule applies.

For more information, please see http://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_fhb8.pdf.

To apply for the exemption/concession, you will need to sign an application in the presence of a qualified witness, eg. a Solicitor.

If you are a first home buyer purchasing off the plan/new homes, give our office a call, we will ensure that your stamp duty exemption/concessions are thoroughly considered and we will take care of your exemption/concession application.

Also note that you are also mostly entitled to the First Home Owner Grant of $15,000.

First Home Owner Grant

In addition to the stamp duty exemptions/concessions, effective from 1 October 2012, under the NSW First Home Owner Grant (New Homes) Scheme, first home buyers purchasing new homes/off the plan or entered into a contract for a property to be build will be entitled to $15,000 First Home Owner Grant. This grant was previously at $7000 only.

The grant does not apply to vacant land purchases.

To be eligible for the grant, each purchaser (and their spouse/de-factor partner) must:

1. have not owned (either jointly or solely) a residential property in Australia before 1 July 2000;
2. have not owned (either jointly or solely) a residential property and occupied that property continuously for a period of at least 6 months;
3. have not previously received a First Home Owner Grant in any other states;
4. total value of the property < $650,000;
5. at least 1 applicant is an Australian Citizen or Permanent Resident; and
6. residency rule applies.

For more information, see http://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_fhb7.pdf.

Application for the First Home Owner Grant is generally done through your broker/lending representative as this ensures that the grant is available at settlement. At Zhang Partners, we will assist your broker/lending representative in certifying all relevant documentations as required by the application as well as witnessing your signature on the application. We endeavour to ensure that our clients obtain the grant eligible without any hassles.