The current First Home Owner Grant (FHOG) is coming to an end on December 31, 2009. To be honest it can’t come quick enough as far as I’m concerned so I thought it would be important to explain what will be in place after that date.
The New South Wales Government will fully fund the new scheme as the Federal Government will have withdrawn from the scheme altogether. The eligibility criteria is even more ridiculous than before, encouraging the urban sprawl for which the Government has shown they cannot provide adequate infrastructure to cope with. But in the interest of conveying their “new inspiration ” here is the criteria for the revised Grant in NSW.
First home buyers of any type of property in NSW will be eligible for a $7000 grant for the purchase of any property – a new or existing dwelling. This is called the NSW first home owner grant.
To be eligible for the additional supplement of $3000 you must purchase between November 11 2008 and June 30 2010. This is called the NSW Home Buyers Supplement. The conditions attached to this can be confusing and relate to new builds only or properties that have never been lived in before.
Here are the terms:
1. 1. You must sign a contract to purchase
2. 2. If you buy off the plan the completion date should be no later than May 10, 2011 or for contracts dated before November 11 2009 the completion date should be no later than December 31 2011
3. 3. For owner builders the completion date should be no later than 18 months after the laying of the foundations.
So in summary if you are buying an existing dwelling you can still get a grant of $7000 – it was $14,000 and if you are purchasing a new building or one that has never been lived in before you may be entitled to a total of $10,000 – it was $21,000.
If you are confused you are not alone. Stamp Duty Concessions in NSW will still apply. At the time of writing zero stamp duty is payable for a purchase of a home at or less than $500,000. There is no discount on Stamp Duty for a purchase of a home at or more than $600,000 – meaning that Stamp Duty will cost $22,490.
If you purchase land for $300,000 or less you will pay zero Stamp Duty and if you buy land for $450,000 or more there is no discount and you will be forced to pay Stamp Duty totaling $15,740.
I feel exhausted explaining the rules and regulations attached to the Grants and Concessions and feel sorry for those that must enter this minefield. I hope it helps make sense of what makes little sense to most.