For any first-time home buyer, it can be challenging to keep up with all the fees, taxes and other costs associated with purchasing a home. For many Australians, buying a home will be their biggest investment and also their most costly one. Finding ways to mitigate costs can allow first time buyers to begin their journey towards home ownership.
Various local governments have stepped up their efforts to facilitate home ownership. In particular, the NSW Government implemented an initiative aimed at reducing/eliminating various duties that are levied towards home buyers.
What is First Home Buyers Assistance?
The First Home Buyers Assistance is essentially a home ownership grant. If you're making your first home purchase for a property that costs up to $650,000, you are eligible to receive a grant of up to $10,000 that you can use towards offsetting some of the purchasing costs.
The grant holds true for properties that were purchased on or after January 1st, 2016. If you're planning on purchasing a home that costs more than $650,000, you will not be eligible for this particular grant. In addition, only first time buyers can receive this grant.
In addition to the grant itself, there are also exemptions on transfer duty that you can receive when purchasing a new or existing home. If you purchase a home that costs up to $650,000, you will receive a complete exemption on transfer duties. If the home costs between $650,000-$800,000, you will be eligible for various concessions on duties that are levied.
Building a home on vacant land
There are also various exemptions you can receive for purchasing a piece of land that you intend to build a home on. You will receive duty exemptions on a purchase of vacant land that cost up to $350,000. For land that costs between $350,000-$450,000, you will be eligible for various exemptions.
Qualifying for the first home buyer's grant or exemptions
The main qualification criteria for these grants and exemptions are that you must be intending to purchase your first property. If you have owned property before, you may not be eligible. In addition, you must be planning to make a purchase on the whole property, as opposed to making a partial purchase.
You must also be making the purchase for personal use as opposed to acting on behalf of a company or a trust.
Overall, this initiative aims at promoting first time home ownership. Find out more information here and consult a conveyancing solicitor to see how you can take advantage of these grants and exemptions on your journey towards home ownership.