First Home Buyers – Ready for an Exemption or Concession?
Purchasing your first home is exciting yet nerve-wrecking, all at the same time. It is a big commitment and undoubtedly one of the first and major goals most people work towards. Therefore, it comes as no surprise that such a huge goal requires a lot of funds.
However, the good news is that the NSW Government introduced the First Homer Buyers’ Assistance Scheme (FHBAS) to offset the effect of GST on home ownership, commonly referred to as stamp duty or transfer duty. It is a one-off exemption for first home buyers, if they satisfy all of the required eligibility criteria.
The exemption applies if your home is:
- valued at less than $650,000; and
- is an existing home, new home or vacant land (which you intend to build a home).
If your home is valued between $650,000 and $800,000, you may apply for a concessional rate of the transfer duty.
To be eligible for an exemption of stamp or transfer duty, you must:
- Meet the eligibility requirements
- the contract date must be on or after 1 July 2017;
- you must be an individual;
- you must be over 18;
- your home must be valued at less than $650,000;
- you, and your partner, must have never owned or co-owned residential property in Australia;
- you, and your partner, must have never receive an exemption or concession under this scheme; and
- must be an Australian citizen or permanent resident.
- Meet the residence requirements
- you must move into the new home within twelve (12) months after buying the property; and
- you must live there for at least six (6) continuous months.
Generally, we will confirm with you as to whether you are a first home buyer, and apply for the First Home Buyers’ application on your behalf. We invite you to contact our office to discuss whether you are eligible and how we can assist in your first purchase!
