NSW First Home owner incentives and grants

Written by Ronald Pratap

on August 7, 2020

NSW First Home owner incentives and grants

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.

First home owner grant

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:

  • newly constructed home or a substantially renovated home has a total value less than $600,000
  • land for building and any dwelling you intend to build has a combined value less than $750,000.

HomeBuilder

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

  • $125,000 per annum for an individual based on either your 2018-19 or 2019-20 taxable income, as shown on your notice of assessment issued by the Australian Taxation Office or
  • $200,000 per annum for a couple based on either your combined 2018-19 or 2019-20 taxable income, as shown on your notices of assessment issued by the Australian Taxation Office.

$750,000 limit for new builds

HomeBuilder Applications cannot be submitted until the online portal goes live.

Stamp duty increased for NSW first home buyers to boost construction

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

First Home Loan Deposit Scheme

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.

  • All applicants must be First Home Buyers and must not have owned or had an interest in residential property (whether as an investment or owner occupied).
  • Individual applicants must have earned less than $125,000 or $200,000 for couples in the last financial year (as evidenced on your ATO Notice of Assessment).

 

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 admin@rpwealthmanagement.com.au

We service the Macarthur  and wider West Sydney region  with clients in Parramatta, Liverpool, Penrith, Campbelltown, Camden and Sydney City.

For further information please visit:

https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer

 

 

The material shown in this article is for general information purposes only. It is not intended to be, nor should it be read as specific personal investment or risk advice.
Before acting on any of the information contained in this article you should obtain special advice from a specialist investment or lending  professional, which is appropriate to your specific investment or risk needs, objectives and financial situation.
Whilst all care is taken in the preparation of this material, no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by RP Wealth Management.

Ronald Pratap

Principal Financial Planner at RP Wealth Management | Financial Planning l SMSF I Insurance l Property Advisory. Our purpose is to provide our clients with sound advice and direction to assist with their financial affairs and help them make the best choices in achieving what is important to them.

Latest Posts

Setting yourself up for a successful 2024

Setting yourself up for a successful 2024

January 29, 2024
Everything you need to know about making your Will

What you need to know about making your Will

January 29, 2024
How much will I need in retirement_

How much will I need in retirement?

August 6, 2023
What Clients Are Saying About Our Financial Planning Services
I had the pleasure of meeting Ronald for my first consultation and he explained everything step by step to myself whi has no financial/investing experience.I was terrified of making a move to seek financial advise and he simplified it for me the best he could and left me with comfort in making the right decision by approaching RP wealth management. I'm excited for the journey ahead of taking control of my finances.Thanks again Ronald
Shadia Haoui
Shadia Haoui
02:43 16 Aug 23
I would recommend the team at RP Wealth management to anyone looking at getting their personal insurances sorted and financials planning in order. Ron and Sedat are proactive with their approach and are a wealth of knowledge. Thankyou team
Pat Zarzour
Pat Zarzour
11:15 09 Aug 23
Ronald is a very experienced Financial Advisor and very professional. Nothing is a trouble for him he goes over and above always being patient and explaining everything that is required for the client in their best interests. He is so knowledgeable and his presentations are amazing well set out and easy to understand. So glad we were referred to him he has helped myself and husband so much. 5 Stars for sure thanks Ronald.
Nicole Ferraro
Nicole Ferraro
08:23 24 Jul 23
4 months ago I sought out advice on financial security, investments and retirement. At my 1st consultation I found Ron to be welcoming, friendly and professional. He was honest and upfront about the services he offered.Since then Ron and I have discussed options and strategies, combining my current financial situation and superannuation. His expertise, knowledge and access to a broad range of financial products helped in developing a personal customised plan.I'm very happy to recommend RP Wealth Management Ron and his team. They get 2 thumbs up from me.Thank you Ron for your support and guidance. I look forward to your continual advice in the future.
Shirley McNicol
Shirley McNicol
14:23 17 Jul 22
Great team, very helpful.Ronald always goes out of his way to assist with any questions I have and there is constant engagement, great reporting and a real sense of the team being there to support and help you. I must admit I was sceptical about seeing a financial advisor, I had worried I was going to meet with some slick salesperson interested in cashing in on my inexperience and trying to sell me a bunch of things I didn't really need. Ronald was the complete opposite to this, he has been open and honest and genuinely interested in our goals, we will not be changing, and we will be sticking with the team at RP Wealth Management.
Justin Read
Justin Read
00:02 30 Mar 22
Ron and team are very professional, patient and very transparent.Very happy to have found Ron and working on my needs.
Vinodh Kumar Ravinder
Vinodh Kumar Ravinder
17:52 24 Feb 21
Ronald is very informative and professional and I have no hesitation to recommend him highly.
Chris Bakalian
Chris Bakalian
04:30 02 Jun 20
Ron and the team are extremely professional and knowledgeable, complimented by exceptional customer service.
Michael Ferella
Michael Ferella
04:11 27 May 20
Ron is honest, intelligent, trustworthy, and hardworking adviser. Always goes above and beyond to ensure he gets the best outcome for his clients. Highly recommended!
Petra Novakova
Petra Novakova
12:25 06 Feb 20
Ron is amazing!! He is so easy to talk to and explains things so you can understand everything. If we had any questions about anything he was always there to answer our questions. Definitely recommend him.
Jessica Lanzendorfer
Jessica Lanzendorfer
09:05 11 Oct 19
Ronald is a great person to deal with...explains everything very clearly and goes through all your options...looks out only for his client not any personal gain..I feel confidence that my wealth management and finances are handled correctly with his guidance
Jordan Mijalkov
Jordan Mijalkov
07:57 24 Sep 19
Ron and his team have a wealth of knowledge in the industry and have referred relatives and clients, whom have been satisfied with his service to ensure that they are adequately protected.
Daniel Caldwell
Daniel Caldwell
22:24 07 May 19
Have had a great experience, have felt all meetings and communication to be very informative and honest in areas I was uncertain about.
Josh Saumatua
Josh Saumatua
08:34 22 Jul 18
Very knowledgeable and informative. Happy to answer all questions and always responds to my calls/emails. Takes control which makes for a simple and seamless process.
Dee Bee
Dee Bee
12:24 20 Jul 18
Ronald is so easy to deal with and helps you every step of the way to make it so efficient and quick to fill out paperwok. He is very professional and makes it all happen so quickly. He always picks up the call or gets back to you, What else can you ask for. Great guy and service
Mibu Medispa
Mibu Medispa
08:08 16 Jul 18
Very professional and consistent in his work with truckloads of knowledge in his industry. He helped me with my life insurance and did a fantastic job from start to finish. Walking me through the entire process and always following me up. I would not hesitate for a second to recommend Ronald’s services to anyone. Great guy. Great professional. Great service.
Caterina Romeo
Caterina Romeo
01:07 18 Apr 18
I met Ronald in a professional capacity, and his willingness to share his insights and his enthusiasm for the work that he does clearly shines through. I'd highly recommend connecting with him if you're looking for an adviser who holds great integrity in the way they support their clients.
Shannyn Merlo
Shannyn Merlo
08:32 23 Feb 18
Great service and very helpful
Dragan Jelic
Dragan Jelic
01:25 27 Oct 17
Ronald is great communicator and very knowledgable with his financial advise. He helped my wife and I structure a better protection plan covering life insurance, trauma cover and income protection. Easy to discuss any questions we had and generally very helpful. I highly recommend talking with Ron!
James Newman
James Newman
03:38 25 Sep 17
Ronald is a really easy going guy to deal with. He will go above and beyond to ensure he finds out all the details and gets you the best cover for your circumstances. Ronald made the process of getting Trauma Insurance and Life Insurance very easy - much easier than I thought and it was surprisingly cheaper than I thought it would be too. I really recommend you see RP Wealth Management.
Hayley Pieplenbosch
Hayley Pieplenbosch
05:55 28 Jul 17
I needed general financial advice and he delivered with the lingo I easily understood. Friendly guy and always approachable. Would highly recommend him to anyone!
Gorgi Serovski
Gorgi Serovski
13:09 22 May 17
A hard working and diligent professional, Ronald certainly places his clients needs first in all situations. Keep up the good work!
Shaun Pereira
Shaun Pereira
00:14 19 May 17
We've Been Featured In
Industry Recognition

TAL Rising Star Financial Planning finalist 2016

RI Advice Excellence award Finalist 2014

One of the 50 Most Influential Advisers 2021

Subscribe To The RP Wealth Newsletter
You’ll receive the latest information about our business, services, new offerings and our marketing communications.
Book Your Consultation
Are you ready to secure your financial future today?
Get in touch with us to develop your strategic plan and achieve peace of mind.

© 2023 RP Wealth | Privacy Policy