The First Home Owner Grant (New Homes) Scheme is NSW Government initiative to help you purchase your first home. To be eligible, a first home buyer needs to build or purchase a new home where the value of the property does not exceed the FHOG grant cap of $650,000. This cap will be increased to $750,000 as of 1 July, 2014. A new home:
Has not been previously occupied - this includes occupation by the builder, a tenant or other occupant.
Has never been sold as a place of residence. When you purchase the home, it must be the first sale of that home.
Has been substantially renovated or the home has been built to replace a demolished premises.
If you're a First home buyer and meet the eligibility requirments, you may qualify to receive a one-off FHOG of $15,000.
However if you contract commencement date is on or after 1 January, 2016 you will be applying for the new, reduced FHOG of $10,000.
In conjunction with the NSW First Home Owner's Grant (New Homes) Scheme, you may also be eligible for the First Home (New Homes) Scheme. If you are eligible, this scheme provides exemptions of concessions on transfer duty (Stamp Duty).
Under the NSW First Home (New Homes) scheme:
- An exemption from transfer stamp duty is also available for eligible first home buyers purchasing a new home valued up to $550,000 and vacant land up to $350,000; and
- Concessions are available on stamp duty for homes valued between $550,000 and $650,000 and vacant land valued between $350,000 and $450,000.
This includes buying land as the site to build a first home.