Tuesday, June 12, 2012

First Home Buyers Grant

NSW is set to have the most generous first home buyer scheme in the country - provided you buy a new house or apartment.

The state government announced changes in the budget to more than double the first home grant to $15,000 for buyers of new property priced up to $650,000.

However, buyers of existing property are in for a nasty surprise. The $7000 first home owner grant - in operation since 2000 - will cease to exist.

This move is designed to motivate buyers to buy new rather than existing properties.

First home buyers of new houses and apartments will also continue to be exempt from stamp duty and it will now apply to properties worth $650,000, rather than the $600,000 previously.

The budget changes mean that, from October 1, first home buyers who purchase a new home priced at $550,000 can save up to $35,240, which is close to $20,000 more than the previous saving.

As expected, the government has now ended the stamp duty concessions for non-first home buyers of new properties.

But by way of compensation, it will offer a $5000 grant to purchasers other than first-timers - investors, upgraders and downsizers - for new properties priced up to $650,000.

"This government is taking action now to address decades of neglect in the state's housing and construction market," Mr Baird said.

"For too long, the NSW housing sector has been dormant at a significant cost to the people of NSW and our economy.

"This budget demonstrates the NSW government's commitment to addressing the state's housing shortage, kick-start the housing construction sector and get more people into new homes sooner."

// posted by ULTRASKOOL @ 2:08 AM