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NSW’s new homebuyer scheme has now kicked in, which means there are changes in store for the local property market.
The new first home owner grant (new homes) scheme began on 1 October 2012, offering eligible first home buyers a $15,000 grant to buy or build a new home worth up to $650,000.
The new homes scheme replaces the $7,000 first home owner grant, which ceased for all contracts dated on or after 1 October 2012.
According to the NSW Office of State Revenue (OSR), “a new home is a home that has not been previously occupied or sold as a place of residence, and includes a home that is a substantially renovated home and a home built to replace demolished premises”.
In some cases a substantial renovation can be considered as a new home if “all, or substantially all, of a building is removed or replaced”.
Keep in mind that substantial renovations do not include cosmetic work such as painting or replacing fittings. If you’re applying for the grant through substantial renovations, the OSR will consider the application on a case-by –case basis.
First home buyers are also eligible for stamp duty concessions under the new scheme. No duty needs to be paid on a new home valued to $550,000, or residential land valued to$350,000.
To apply for the new $15,000 grant, you can make an application through a lender or through the OSR.
If you make an application with a lender, the grant will be paid on settlement if you are buying a new house, of if you are building, on the first draw down on contracts to build.
If you are applying to the OSR, you can do so after your new house is built or upon settlement.
The $15,000 first home owner grant (new homes) will be available until 31 December, 2013, after which the grant will be reduced to $10,000.
To find out whether you’re eligible for the new grant, you can read the requirements at the OSR website.
There are plenty of great home and land packages available in the Liverpool area for first home buyers, so if you’re looking to take advantage of the new grant then get in touch with one of the team at Professionals Paradise Realty in Casula.