Changes to First Home Owners Grant

As of the 30th September 2012 the $7,000 first home owner grant for established properties will end. Properties purchased on or prior to this date are still eligible. This will be replaced by the $15,000 First Home Owner Grant (New Homes) Scheme from 1 October 2012.

The new First Home Owners Grant is available to all first home buyers regardless of income, who purchase or build a new home where the eligible contract date is on or after 1 October 2012. This grant is set to be reduced to $10,000 on all transactions which have a contract date on or after 1 January 2014.

First Home Owners are eligible for the grant if;

• The home has not been sold previously or occupied; or
• The home has been substantially renovated or a home built to replace demolished premises.  

Other conditions that need to be met;

• The contract date for the purchase or construction of the new home must not be earlier than 1 October 2012;
• Applicants who purchase a new home or build a home which has a total value (including land value) of more than $650 000 will not be eligible for the First Home Owner Grant (New Homes) Scheme.
• Construction of the home (including the laying of the foundation) must not have commenced prior to 1 October 2012.  

Stamp Duty

Since 1 July 2012 the concessions that apply to stamp duty will continue to apply for;

• First home owners who intend to construct a new home on vacant land; or
• First home owners who buy a new home that has not been previously sold or lived in.

Full concessions are available if the value of the home is;

• Less than $550,000; or
• The value of the block of land is less than $350,000.

Concession is reduced but still available for;

• Properties between $550,000 and $650,000; and
• Land valued between $350,000 and $450,000.

The Stamp Duty Concession essentially means that First Home Buyers may not have to pay Stamp Duty, or pay a reduced amount.

Use our Stamp Duty Calculator to run some numbers to see the cost and benefits should you be considering buying a new home.

It may also be a good time to review the different types of loans that can be used to finance your property. Click here to learn more from our Debt Management & Leverage learning module.