Our Green Hills Branch Lending Manager Ryan Morgan-Jones looks at important changes to Government incentives for first home buyers in Queensland and NSW. Knowing when to act can make you thousands of dollars better off.
In both NSW and Queensland incentives for all first home buyers are being replaced with a new, more generous scheme but the incentives are only for people buying or building new homes.
In Queensland a new First-Home Owner Construction Grant (FHOCG) of $15,000 has just come into effect for first home buyers building or buying a new property valued at less than $750,000. That’s the good news.
The bad news is that it replaces a scheme which gave $7,000 for first home buyers of either new or existing homes.
If you are a first home buyer who has purchased an existing dwelling you have until October 11, 2012 to finalise your contract to be eligible for the $7,000 grant.
There is some more good news. Under a scheme which has operated since August 2011 all first-home buyers are exempt from stamp duty on homes valued up to $500,000 and for vacant land purchased to build a new home up to a value of $250,000.
In NSW a similar Scheme has been established to assist first home owners to purchase or build a new home by offering a $15 000 grant. FHOG (New Homes) applies for purchases with a contract date on or after 1 October 2012. The grant will reduce to $10,000 on 1 January 2014.
The bad news is that the $7,000 First Home Owner Grant for people buying new or existing dwellings ceases to apply where the contract date is on or after 1 October 2012.
This means if you are purchasing a new home if you delay the contract date until on or after 1 October you may benefit by $8,000. If you are purchasing an existing home you have until 1 October to sign the contract or you will miss out on $7,000.
With both schemes there is a cap placed on the value of the property. It is currently $835,000 but will reduce to $650,000 after 1 October 2012.