As a first home buyer in New South Wales, before purchasing a home (unit or house), you should make sure that you are aware of any benefits that you are entitled from the New South Wales Government. Below is a brief summary of some of the benefits, including stamp duty benefits for first home buyers, that you might be entitled to.
This article was published on 02/07/2019.
Transfer duty, which up until recently was known as stamp duty, is payable to the New South Wales Government on the purchase of all properties. However, as a first home buyer you might be entitled to the benefit of the First Home Buyer Assistance Scheme.
The First Home Buyer Assistance Scheme came into effect on 1 July 2017. Provided that the contract for the home that you are purchasing was not entered into before that date, you may be entitled to a reduction in the payment of transfer duty, or a full exemption.
Any reduction in the payment of Transfer Duty (for the purchase of a new or existing first home) is dependant on the value of the home. If the home is valued at less than $650,000.00, an application may be made for a full exemption from payment of Transfer Duty. Whilst you will not be entitled to a full exemption from Transfer Duty if the value of the home exceeds $650,000.00, you may apply for a reduced payment of Transfer duty. However any reduction in Transfer Duty that you receive decreases as the value of the home increases to the value of $800,000.00. Once a home is valued at $800,000.00 or above, all exemptions and reductions offered by the NSW Government concerning the payment of Transfer Duty is extinguished.
All applications for any benefits concerning payment of Transfer Duty should be made through your solicitor, and any queries concerning the benefits available should be raised at that time.
If you are first home buyer, looking to buy or build a new home in New South Wales, you may qualify for a grant of $10,000.00 under the First Home (New Homes) Scheme.
The Grant is only available on contracts involving the building or purchasing of a newly built home, and legal advice should be sought to determine whether you are entitled to the Grant.
The above is a brief and general guide only regarding some of the benefits available to first home purchasers provided by the New South Wales government. You should contact your solicitor prior to signing any contract to determine what benefits you may be entitled to as a First Home Buyer.
If you would like assistance with any of the above, do not hesitate to contact the Commercial, Property and Estate section of Watts McCray Lawyers.