Purchasing your first home or apartment may be considered a daunting process if you have not engaged with the conveyancing process before. However, the NSW government has introduced incentives for first home buyers to get their foot in the door with benefits like a reduction or exemption to transfer duty.
TRANSFER DUTY REDUCTION AND EXEMPTIONS
Transfer duty, previously known as Stamp duty is a fee that is due to the NSW government in the purchase of any land or property. The First Home Buyers Assistance Scheme (FHBAS) came into effect on 1 July 2019 and entitles first home buyers to a reduction or complete exemption on Transfer Duty if the property is between the price ranges specified below:
New and existing homes:
- You can apply for a full exemptionif your home is valued less than $650,000
- You can apply for a reduced rate if your home is valued between $650,000 and $800,000. The transfer duty you will have to pay is
Vacant land:
- Full exemption if your land is valued at less than $350,000
- Reduced rate if your land is valued between $350,000 and $450,000
You will also need to satisfy the following:
- Your contract date was entered after 1 July 2019 for the purchase of the whole property
- You are an individual over 18
- You and your spouse or partner, have not owned or co-owned residential property in Australia
- You and your spouse or partner have not received an exemption or concession under the FHBAS
- At least one of the first home buyers is an Australian citizen or permanent resident
At least one of the first home buyers must:
- Move into the new home within 12 months after purchasing the property AND
- Live there for a minimum of 6 continuous months
BUYING OR BUILDING A NEW HOME?
The NSW Government also offers a building grant up to $10,000 for first home buyers for newly built homes under the First Home Owner Grant (New Homes) scheme.
- The home cannot be valued at more than $600,000
- The vacant house and land package cannot exceed $750,000 in total
HOW WE CAN HELP
Purchasing your first property may seem like a daunting or uncertain experience. As a first home buyer there are a few incentives including a reduction or exemption in fees or a first home buyers grant that you may be eligible for. To find out if you are eligible for any grants or concessions contact us to make an appointment to discuss your options with an experienced lawyer on (02) 9920 1787
