First Home Buyer

woman_Moving_In

When purchasing a home there are many things to consider. How much can I borrow? How much do I need for a deposit? Can I obtain an approval before auction?
At Humble Abode we take all the stress out of these decisions and provide a simple summary of your options based on your financial needs. We can assist with information on what is required, how long it will take and which loan is the most appropriate for you.
Government Assistance
To help with your purchase you may be eligible for government assistance via the First Home Owners Grant and/or a reduction on Stamp Duty, thus reducing the amount of deposit required and helping to get into your new home sooner.

First Home Owners Grant

The First Home Owner Grant Scheme (FHOGS) is fully funded by the NSW Government and administered by the Office of State Revenue (OSR). The Scheme was established to assist first home buyers to purchase or build a new home by offering a $15,000 grant.

To be eligible for the First Home Owners Grant you must meet certain criteria including;

  1. Each applicant is a natural person and not a company or trust.
  2. Must be an Australian citizen or permanent resident and at least 18 years of age.
  3. All applicants and/or their spouse/de facto have not owned a residential property jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.
  4. All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months.
  5. Each applicant has entered into a contract for the purchase of a new home or signed a contract to build a home on or after 1 October 2012. In the case of an owner-builder, laying of the foundations commenced on or after 1 October 2012.
  6. At least one applicant will occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months from the date they are registered on title, if purchasing a new home or if building a home, the construction completion date.

All parties that are purchasing the property must meet the above criteria, however there are no income restrictions as the grant is not means tested.
The FHOG will not apply if the purchase price exceeds $650,000 in NSW. Additional benefits are also available.

For information visit www.osr.nsw.gov.au/benefits/first_home/

Stamp Duty

When buying a property you may be required to pay the appropriate State Stamp Duty. This can be quite substantial and needs to be considered when buying a property.

Under the NSW First Home – New Home Grant, the stamp duty can be waived on new homes up to the value of $500,000 and concessions from $500,000 to $600,000.

Vacant blocks of residential land to build homes on will also have the Stamp Duty waived up to a value of $300,000 and concessions from $300,000 to $450,000.

The following table shows how duty is calculated in NSW.

$0 – $14,000

$1.25 for every $100 or part of the dutiable value

$14,001 – $30,000

$175 plus $1.50 for every $100 or part , by which the dutiable value exceeds $14,000

$30,001 – $80,000

$415 plus $1.75 for every $100 or part, by which the dutiable value exceeds $30,000

$80,001 – $300,000

$1,290 plus $3.50 for every $100 or part, by which the dutiable value exceeds $80,000

$300,001 – $1m

$8,990 plus $4.50 for every $100 or part, by which the dutiable value exceeds $300,000

over $1m

$40,490 plus $5.50 for every $100 or part, by which the dutiable value exceeds $1,000,000

over $3m

$150,490 plus $7.00 for every $100 or part, by which the dutiable value of the residential property exceeds $3,000,000

For additional information and calculations visit www.osr.nsw.gov.au/taxes/transfer-land/about