There are a number of options available to FHB’s and we break them down and give you the main facts you should know before taking this into account when looking for a property.
If you’re a first home buyer and you’re buying or building a new home, you may qualify for a $10,000 grant under the First Home Owner Grant (New Homes) scheme if you purchase date was on or after 1 January 2016.
You can make a claim for the First Home Owner Grant if your:
HomeBuilder provides eligible owner occupiers with a grant of $25,000 to build a new home, substantially renovate an existing home or buy an off the plan home/new home. A new home is one that has not previously been sold or occupied as a place of residence, (e.g. spec build) and where construction commenced on or after 4 June 2020 at a limit of $750,000.
Applicant(s) must be below one of the following two income caps
$750,000 limit for new builds
HomeBuilder Applications cannot be submitted until the online portal goes live.
Under the changes, the threshold for stamp duty being charged on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million. The stamp duty threshold on vacant land will also rise from $350,000 to $400,000 and will phase out at $500,000.
The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes, and will last for 12-months, starting on August 1 2020
What is it?
The First Home Loan Deposit Scheme is designed to get eligible buyers into their first home sooner without having to pay lender’s mortgage insurance.
How does it work?
Eligible applicants will receive a limited guarantee from the Australian Government to purchase their first home with a deposit of as little as 5%
When’s it available?
New Scheme places are released at the start of each financial year, with the latest release on 1 July 2020. There are only certain banks that are able to access this government initiative with NAB and CBA are able to support up to 5,000 customers each to purchase their first home through the Scheme with another 10,000 spots available to second tier lenders.
Depending on your situation and the property you are purchasing, you may qualify for all four benefits or you may only be eligible for certain benefits.
While we have pointed out the main benefits and certain eligibility criteria of the government initiatives, there is a number of factors that may impact your ability to qualify.
It is best to ensure you work with your finance professional to understand where you stand as time-frames of build, contract types, lodgement of tax returns and documentation all come into play with the above incentives.
For further information or if you would like to discuss your options and look at your borrowing power, contact our Oran Park office on (02) 9188 1547 or email firstname.lastname@example.org
We service the Macarthur and wider West Sydney region with clients in Parramatta, Liverpool, Penrith, Campbelltown, Camden and Sydney City.
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