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.