Is buying your first home NSW one of your long-term goals? If yes, then this article is for you! A home isn’t just a place to live; it’s one of the biggest investments you’ll ever make. Beyond the comfort and security, it provides, homeownership builds equity and offers potential financial rewards.
In a state as vibrant as New South Wales (NSW), getting ready to buy a property may be an exciting time. However, it can be intimidating for first-time buyers to navigate the world of mortgages, grants, and the property market. Additionally, you must:
- Find out the difference between exchange and settlement.
- Know when to pay stamp duty and if you are eligible for a stamp duty exemption.
- Whether you should go to a bank or a mortgage broker
Luckily, we have this article prepared for you about buying your first home NSW.
The First Homeowner (New Homes) Grant
If you’re researching buying your first home NSW, you must know about the First Homeowners Grant (FHOG). The FHOG is a one-time grant provided by the NSW government to assist first-time homebuyers in purchasing or constructing a new home. Currently, the grant amount is $10,000.
However, the government requires that you must be eligible to avail of this grant. Here are some of the general requirements to avail of the first homeowner grant:
- At least one applicant must be an Australian citizen or permanent resident.
- Neither you nor your spouse/partner can have owned or co-owned a residential property in Australia before July 1st, 2000.
- You must move into the home within 12 months of purchase/completion of construction and live there continuously for at least six months.
- The total value of the home (including land) must be below $600,000 for a new home or property purchase and below $750,000 if building a new home.
Eligibility requirements are based on the type of dwelling category you belong in. The types of dwelling categories are:
- Contract for the purchase of a new home.
- Comprehensive home building contract
- Owner builder
For the complete eligibility requirements and list of supporting documents, check out Revenue NSW’s website. You can apply for the grant through this link.
Stamp Duty Exemptions/Concessions
When you’re buying your first home NSW, make sure that you have enough knowledge about stamp duty exemptions or concessions. Under the First Home Buyers Assistance Scheme, eligible first home buyers in NSW may qualify for a full exemption or a reduced rate of transfer duty.
Stamp duty, also known as transfer duty, is a government tax levied on property purchases. The amount varies depending on the property’s purchase price. Starting on July 1, 2023:
- purchasing a new or existing house up to $800,000 will be completely exempt from transfer duty.
- properties over $800,000 but under $1,000,000 may be eligible for a concessional rate.
Moreover, if you’re buying undeveloped land with the intention of building a house on it, you can be eligible for a concessional rate on land valued under $450,000 and an exemption on land priced up to $350,000.
To avail this benefit, make sure that you tick off all the boxes in this checklist:
- the purchase must be for a new or existing home, or vacant land in NSW.
- the property value must be within the threshold amounts.
- the transfer must be for the whole property.
- you must be an individual, not a company or trust (may be waived by contacting Revenue NSW)
- you must be over 18 (may be waived by contacting Revenue NSW)
- you and your spouse or partner must never have owned or co-owned residential property in Australia.
- you and your spouse or partner must never have previously received an exemption or concession under the scheme.
- at least one of the first home buyers must be an Australian citizen or permanent resident.
- for new or existing homes, you must meet the requirements for living in the property.
Requirements for Living in the Property
Revenue NSW imposes several requirements for living in the property if you’re buying your first home NSW:
| Contracts exchanged on or after 1 July 2023 | (a) Move into the home within 12 months after settlement, and (b) Live in the property as your principal place of residence for at least 12 continuous months. |
| Contracts exchanged between 1 July 2017 and 30 June 2023 (inclusive) | (a) Move into the home within 12 months after settlement, and (b) Live in the property as your principal place of residence for at least 6 continuous months. |
Note that:
- You won’t need to fulfill these residency requirements if you and the people you’re buying with are on the NSW electoral roll and you are a permanent member of the Australian Defence Force at the time of your exchange agreement.
Consult a property lawyer for legal counsel if you have any issues regarding the conditions associated with residing on the property.
- Should your situation alter, and you become unable to fulfill the residency prerequisite, your eligibility for the programme will terminate. To make arrangements for the proper duty to be paid, you must notify Revenue NSW right away. Penalties and interest may be imposed upon you if not.
Applying for the First Home Buyers Assistance Scheme
If you think you are eligible to avail of the First Home Buyers Assistance Scheme, you may proceed to the application process by filling out these forms:
- Contracts exchanged on or after 1 July 2023: First Home Buyers Assistance Scheme Application form ODA 066B
- Contracts exchanged on or before 30 June 2023: First Home Buyers Assistance Scheme Application form ODA 066A.
Your conveyancer or attorney must receive your application paperwork and proof of identity. Revenue NSW specifies the following proof of identity documents that first-time home buyers must provide for the application:
- If you’re born in Australia, you must present an Australian birth certificate issued by Registry of Births, Deaths & Marriages.
- If you’re born overseas:
- Foreign Passport and current Australian Visa issued for entry into Australia.
- Foreign Passport and Citizenship Certificate
- New Zealand Passport (New Zealand citizens only need to produce their New Zealand passport as their Special Category Visa issued under section 32 of the Migration Act 1958)
- Australian Passport
- Australian driver’s licence (current) or
- Passport (current) or
- Firearms licence (current) or
- NSW photo card issued by Roads and Maritime Services.
Contact a Property Lawyer from JB Solicitors
Purchasing a house is among the most significant financial choices you will ever make. An experienced property attorney from JB Solicitors will review contracts, defend your rights, and secure your future. Make an appointment with one of our knowledgeable real estate attorneys to ensure a stress-free acquisition process and don’t leave anything to chance.
