The New South Wales first home buyer grant has been extended by the state government. First home buyers who purchase a new home or apartment up to the value of $750,000 may now be eligible for the $15,000 grant from July 1.
What has changed with the grant?
Previously, the home value threshold of the grant was $650,000. But, shifts in Sydney’s median dwelling price has prompted changes. In 2012, Sydney’s median dwelling price was $541,000. This has now moved to $678,500 according to RP Data figures. So changes to the grant threshold now meet the market and make it easier for first home buyers to take advantage of.
New South Wales treasurer, Andrew Constance, said that raising the first home buyer grant home value threshold by $100,000 would make the dream of home ownership easier for young families to achieve. Since the March 2011 election, the government claims that some 100,000 new homes have been built. Despite these rates, New South Wales first home buying numbers are still well below average.
During 2013 some 7,600 first home buyers took advantage of the grant compared to 36,000 in 2011. Many believe that this is due to the grant being restricted to new homes. The new homes first home buyer grant, established in 2012, assists first home buyers to purchase or build a new home.
Therefore, it is hoped that by making changes to the threshold that more first home buyers will enter the market before the value of the grant falls. The grant, which is currently valued at $15,000 will fall to $10,000 in January 1 2016. So first home buyers are urged to think about building a new home sooner, rather than later. Otherwise they may miss out on the full grant.
Do other states offer similar grants?
Some other states offer similar first home buyer grants for the purchasing of new homes. Victoria, Queensland and the Australian Capital Territory all offer a grant with a new property value threshold to the value of $750,000. However, Victoria’s first home buyer grant is worth $10,000, Queensland’s $15,000, and the Australian Capital Territory’s $12,500. Victoria also offers a 40 percent stamp duty reduction to those who are eligible for the grant on homes purchased if the value of the home is under $600,000.
Do you want to know if you’re eligible for a first home buyer grant? YES, then contact eChoice, we can help you.
Written by eChoice