With all of the changes surrounding the First home buyers grant in the past, it is easy to get confused as to what you are entitled to.
The rules around the First Home Owner Grant (FHOG) differ between states and territories, so let’s take a look at what you could be eligible for in NSW.
What is the First Home Owners Grant?
The First Home Owner Grant (New Homes) Scheme is a NSW Government initiative to help eligible first home buyers build or purchase a new home in NSW. You will need to meet certain criteria to be eligible (more on this shortly) but if you tick all the boxes, the FHOG in NSW can be worth $15,000 paid as a one-off grant. This figure will drop to $10,000 from 1 January 2016.
Back to those FHOG eligibility criteria. First up, the value of your new home must be below $750,000, and it is only available if you buy or build a new home. This includes off the plan properties.
The home you are planning to build or buy must be the first residential property you – or your co-buyer – have ever owned, and you will need to live in the place for at least six months within 12 months of either settlement or completion of construction.
How to apply
There are a few different ways to apply for the First Home Owner Grant in NSW. We can submit a First Home Owner Grant application along with your home loan application to your chosen lender. Or the form can be delivered straight to the NSW Office of State Revenue.
The NSW First Home Owner Grant is generally paid in a lump sum after settlement of an existing home or at the first progress payment during construction of your new home if you apply at the same time you submit your loan application.
What to consider
We all love to get something for nothing, however as the First Home Owner Grant in NSW only applies to newly built properties, you need to be sure this is the right choice for your needs. We can guide you through the entire buying process as well as assisting with your FHOG application.
Contact either Owun, Suzanne, Costa or Anthony on 02 9517 1818 or firstname.lastname@example.org to discuss your options. Or, if you feel like dropping in at our office, we are located at Suite 106, Flourmill Studios, 3 Gladstone Street, Newtown 2042. Be sure to share our blog on Facebook and Twitter and let others join the conversation!