First Home Owners Bonanza

Monday, March 12 2007

Since July 2000, almost $3.5 billion have been availed by first home buyers in NSW government subsidies and this is expected to grow further with forecasted rise in rents. Renters who may have postponed their purchase for another few years to come up with at least a 5% deposit are now reconsidering their options. With the NSW property market projected to stay relatively flat for 2007 and lenders coming to the party with up to 105% loans, owning a first home may not be as distant a dream for renters. Or at least not for those on a good income to service the mortgage with some help from the government.

The NSW First Home Owners Grant (FHOG) includes a $7,000 for purchase of residential dwellings, excluding holiday homes or renovations to an existing home. The scheme is available to people buying or building their first home.

Requirements

The broad principles of the grant are:

A natural person, not a company or trust;
One of the applicants must be a permanent resident or Australian Citizen;
At least 18 years of age;
Neither the applicant nor their spouse (or de facto) must have owned a home prior to 1 July 2000, either jointly, separately or with some other person.
Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 July 2000.
None of the applicants or their spouse/de facto has previously been party to an approved First Home Owners Grant application.
One of the applicants occupy the home continuously for 6 months, commencing within 12 months of settlement or construction of the home;
Assistance will not be means tested;
There is no tax payable on the grant;
Joint applicants will be restricted to a single application for a single property and only one payment of $7,000 will be made.

Exemptions

In addition, exemptions on transfer and mortgage duty under the NSW First Home Plus program apply to both residential and land (valued up to $500,000 and $300,000 respectively) purchased after 1st July 2004, while some concessions apply on duty for homes and land (valued up to $600,000 and $450,000 respectively) are available.

Equity Resource is happy to provide more detailed information including the required documents in conjunction with the policies of the Office of State Revenue and lodge your FHOG application through the chosen lender. We then follow through until your FHOG funds are available and the home loan purchase is settled.

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