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First Home Owners Grant


Overview
To be eligible for the Federal Government’s First Home Owners Grant scheme you must be an Australian citizen or permanent resident at least 18 years old and you (and or your spouse / partner) must have not previously owned a home in Australia. If there are 2 applicants, at least one applicant needs to be an Australian citizen or permanent resident to qualify.

In NSW the grant is currently $7,000.You can apply for the First Home Owners Grant in the form of cash to add to your deposit and this is usually paid at the time of property settlement.

The property you buy must be an owner occupied property and legislation introduced in 2004 requires you live in the property for a period of at least 6 consecutive months commencing within the first 12 months after purchase. It is imperative that you seek advice from your solicitor if you intend to rent the property at some stage to see if you still qualify for the grant.

The First Home Owners Grant application can be submitted up to 12 months after the property purchase has settled. A current First Home Owners Grant application form needs to be completed to apply and these can be obtained from your lender, accountant or solicitor. 

Eligibility
To be eligible for the First Home Owners Grant (FHOG) scheme you must meet the following requirements:

Single Applicants

• Must be a natural person at least 18 years old
• Must be an Australian citizen or permanent resident
• Must not have received an earlier grant
• Must not have had relevant interest in residential property
• Must reside in the property for a continuous period of 6 months within 12 months after completion of the purchase

Joint Applicants

• One applicant must be a natural person at least 18 years old, please note, for both applicants income to be accessed for loan purposes you must both be 18 years old.
• At least one applicant needs to be an Australian citizen or permanent resident
• The applicant or applicants spouse must not have received an earlier grant
• The applicant or applicants spouse must not have had relevant interest in residential property
• Must reside in the property for a continuous period of 6 months within 12 months after completion of the purchase

Stamp duty concessions
The First Home Buyers scheme in NSW gives a 100% stamp duty exemption for property purchases up to a cost price
of $500,000 ($300,000 if vacant land).

As with the First Home Owners Grant, eligible applicants must be an Australian citizen or permanent resident and
you (and your spouse / partner) must have not previously owned a home in Australia.

First Home Owner Grant changes

First Home Owner Grant cap
On 1 January 2011, the cap was increased to $835,000. The $835,000 cap applies to all applications where the commencement date of the eligible transaction is on or after 1 January 2011. Applicants who purchase or build a home which has a total value of more than $835,000 will not be eligible for the grant.

The previous cap of $750,000 still applies where the eligible transaction commencement date falls between 1 January 2010 and 31 December 2010 (inclusive). Prior to 1 January 2010 there was no cap applicable.

For more detailed information please visit- www.osr.nsw.gov.au


Disclaimer:  Whilst every effort has been made to ensure the accuracy of this information it is not to be relied upon in making a decision to purchase a property, a parcel of land or committing to a building contract. Prospective buyers are strongly advised to seek independent legal advice as to their eligibility for the First Home Buyers Grant or First Home Buyers Stamp Duty Exemption Scheme before proceeding with any property purchase or building contract.