Inconjunction Real Estate - First-Time Buyers

If you’re a first time buyer, then buying a home can be a scary, yet exhilarating time! Before you launch into the hunt for a home,
here are a few topics that you should familiarize yourself with: -

The buying process - Make sure that you understand what lies ahead. Download our information guides so that you’re armed with knowledge.

Saving for a deposit - If you are able to save 20% of the purchase price then you can avoid the costly impost of Mortgage Insurance. Even if you can’t save a deposit, there are lenders who may be prepared to provide finance.

Getting your finance pre-approved – Make sure you’re getting sound financial advice. Shop around for the best mortgage; look for lenders that offer attractive incentives for First Home Buyers.

Your eligibility for the First Home Owner’s Grant – See our notes below on the FHOG.

Rebates on Stamp Duty – Depending on the cost of purchase, you may be eligible for rebates on of the amount of stamp duty payable.

Being realistic! As a first-time buyer you need to make sure you don’t overstretch yourself. Buy well within your budget……

FIRST HOME OWNER’S GRANT

The First Home Owner Grant Scheme (FHOGS) provides a $7,000 incentive to aide first-time buyers. The scheme is available to all eligible first-time buyers irrespective of the area that they intend to buy in, or the value of the property they intend to buy (or build). In addition, the grant is not means tested and no tax is payable.

Here are some of the main eligibilty criteria for the grant:

Applicants must be natural persons (not a company or a trust) who are Australian citizens or permanent residents;

At least one applicant must be an Australian resident or citizen;

Applicants must be buying or building their first home in Australia (note - the number of applicants who must be an Australian citizen or permanent resident varies between States, so too does the age of the applicants). See the link below for more info. on NSW conditions;

Neither the applicant nor their spouse (or de facto) must have owned a home prior to 1 July 2000, either jointly, separately or with some other person.

Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.

Neither the applicant nor their spouse (or de facto) must have claimed this grant previously.

An eligible home will be located in Australia and will be a new or established house, home unit, flat or other type of self contained fixed dwelling that lawfully can be used as a place of residence.

At least one of the applicants must be occupy the home continously for 6 months. The commencement date must be within 12 months of settlement or home construction.

Application for the grant must be made within 12 months of completion of construction or settlement of the home.

Assistance will not be means tested.

There is no tax payable on the grant.

Joint applicants will be restricted to a single application for a single property and only one payment of $7,000 will be made.

If the consideration of the home is less than $7,000 then the grant amount paid to the applicant will equal the consideration.

For further information on exemptions for First Home Benefits in NSW – Click Here (which is a link to the Office of State Revenue, NSW Treasury)

Exemptions for First Home Buyers

If you are buying or building your First Home in NSW, the NSW Government offers a “First Home Plus” scheme that may result in discounts or exemptions on the transfer of Stamp / mortgage duties.

First Home buyers will (typically) receive exemptions on both transfer and mortgage duties for homes valued up to $500,000. Concessions apply for homes that are valued between $500,000 and $600,000.

For further information on exemptions for First Home Buyers – refer to the following link from the Office of State Revenue, NSW Treasury: - Click Here