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Starting on 1 July 2012, the NSW Government introduced the New Home Buyers’ Grant of $5,000 which is applicable to the following new home purchases:
To be eligible for the grant where vacant land is purchased, foundations of the new home must be laid on the property within twenty-six weeks of completion of the purchase.
The grant is available whether or not the purchaser intends to reside at the property, and is available to persons who have previously bought real estate in NSW.
Changes to the First Home Owners Grant are also set to be introduced under the First Home Owner Grant (New Home) Scheme. Commencing on 1 October 2012, this scheme will be accessible to first home buyers who purchase either a new home or a vacant block on which to construct a new home, up to a value of $650,000. The grant available to such purchasers will increase from $7,000 to $15,000.
Purchasers should be aware that, after 1 October 2012, the First Home Owners Grant will no longer apply to the purchase of existing homes, and will be accessible only for purchasers of previously unoccupied homes, off-the-plan units, or vacant land for the purpose of constructing a residence.
Purchasers should also be aware that they must elect between the New Home Buyers’ Grant and the First Home Owner Grant (New Home) schemes: grants cannot be obtained under both schemes for the same purpose.
Stamp duty exemptions on purchases of new homes [owner occupied] have also changed from 1 July 2012, with duty-free thresholds being increased. Please do not hesitate to contact us to find out more.