Reduction in First Home Owners Grant
With all of the focus surrounding the increased availability of the first home owner's stamp duty exemption, something that has slipped under the radar is the removal of the new home grant scheme, and the reduction in the first home owner grant.
The new home grant scheme was a $5,000 grant available to anyone building a new home. The first home owners new home grant was available for first home owners who purchase a new home that is worth less than $750,000, and still is up until 30 June 2017.
What are the changes?
From 1 July 2017 the new home grant of $5,000 will cease and there is nothing that is replacing it. Also from 1 July 2017 the first home owners new home grant will only be available for homes valued up to $600,000 for a new home which includes a home that has not been previously occupied or sold as a place of residence, and includes a substantially renovated home and a home built to replace demolished premises.
The grant will still be available for homes up to $750,000 if they are for the building of a new home as an owner builder, or for the purchase of a comprehensive building contract to build a new home (that is, essentially an off the plan purchase).
What should I do?
Make sure that you get proper legal advice before signing your contract so that you understand what grants or exemptions you qualify for, and what your budget or purchase cost really is. Bruce Coode has been helping people to navigate all of the decisions involved in purchasing a home for forty years and will explain it all to you in plain English. He is happy to look at two or three different contracts (if you decide not to proceed with the first couple) as part of his fixed fee for advising you on the purchase of your property.
If you would like more information about real estate, or about our firm generally, please click on the blue link to the left to read some more of our articles.