ATTN FIRST HOME BUYERS- The latest on government schemes and grants
Buying your first home is an exciting milestone in life. However, with the cost of property, particularly in Sydney, it can be challenging to get into the market.
The New South Wales government has made some changes to some of their support initiatives for first home buyers.
- First Home Buyer Assistance scheme
For contracts that exchange on or after 1 July 2023, eligible first home buyers will receive an exemption from transfer duty for purchases of new and existing homes up to $800,000 and a concessional rate of duty for homes up to $1,000,000.
For a purchase up to $800,000, that’s a saving of approx.… $31,090.
- First Home Buyer Choice
From 1 July 2023, First Home Buyer Choice will no longer be available.
First Home Buyer Choice provided first home buyers with the option between paying a smaller annual property tax, instead of stamp duty.
- Shared Equity Home Buyer Helper
This initiative helps eligible home buyers purchase their own home with as little as a 2% deposit.
The NSW Government will contribute a proportion of the purchase price of a property in exchange for an equivalent interest in the property.
Shared Equity Home Buyer Helper is open to:
- single parents of a dependent child or children
- single people 50 years of age or above, or
- first home buyer key workers who are nurses, midwives, paramedics, teachers, early childhood educators or police officers.
- First Home Owner’s Grant (New Homes)
If you are buying or building your first home, you may be eligible for a $10,000 grant under the First Home Owner Grant (New Homes) scheme.
Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated.
You can apply for the scheme when you arrange finance to buy your home.
If you purchase a newly built house, townhouse, apartment, unit or similar the purchase price must not exceed $600,000.
- First home super saver scheme
If you are eligible, you can save money for your first home inside your super fund.
It works by making voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into your super fund to save for your first home.
You can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home.
- The Home Guarantee Scheme
This scheme supports eligible home buyers to purchase a home sooner and includes the
First Home Guarantee – to support eligible first home buyers to buy their first home sooner, with a deposit as little as 5%.
- 35,000 places are available each financial year.
Regional First Home Buyer Guarantee – to support eligible regional first home buyers to buy a home in a regional area.
- 10,000 places are available each financial year to 30 June 2025
Family Home Guarantee – to support eligible single parents with at least one dependent child to buy a home, with a deposit as little as 2%.
- 5000 places are available each financial year to 30 June 2025.
The scheme is administered by the National Housing Finance and Investment Corporation on behalf of the Australian Government.
Source: https://www.nsw.gov.au/housing-and-construction/first-home-buyer-grants-and-assistance
If you are a first home buyer looking to get into the market, let’s see if you are eligible to take advantage of the above schemes
and grants.
Have a fantastic week!
The team at Build & Protect Financial Services
