In July we wrote about a number of important changes in the property market. One of these changes are changes to the First Home Owner Grant.
From 1 October 2012 the First Home Owner Grant will be replaced with the First Home Owner Grant (New Homes), and the grant will be increased from $7,000 to $15,000. This applies to first home owners who purchase or build a new home. The date of the contract must be on or after 1 October 2012.
There are additional changes to the First Home Owner Grant – for one, From 1 October 2012, the cap will be reduced from $835,000 to $650,000. This means that any first home buyers purchasing or building a new home will not be eligible for the First Home Owner Grant (New Homes) if the value of the contract is more than $650,000.
These changes will remain in place until 31 December 2013 – after that date, the First Home Owner Grant (New Homes) will be reduced from $15,000 to $10,000.
If you are eligible for the First Home Owner Grant (New Homes), you cannot apply for the NSW New Home Grant Scheme of $5,000.
This change is welcome for first home purchasers who want to purchase new property – however it is our experience that first home purchasers typically try to save some money by purchasing pre-existing property.
It is difficult to anticipate how these changes will affect the property market – fortunately however, we assist the full spectrum of the market, from first home purchasers to established property investors.
For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.
Associate Solicitor - Phang Legal