Monday, 19 December 2011

Do first home owners need further assistance from the federal government?

     Do first home owners need further assistance from the federal government?

Video from Aussie

 2012 maybe a new grant on its way come election time?


First Home Plus Scheme

First Home Owners Grant New South Wales

With no changes planned for the first home owners grant in NSW, eligible first home buyers can still apply for the $7000 first home owners grant. However, the New South Wales Government will be making changes to the First Home Plus Scheme,  from January 1 2012, first home owners in NSW will no longer be able to avoid paying transfer title charges on existing homes below $600,000 under the First Home – New Home Scheme.
Additional Grants for New South Wales First Home Buyers
In addition to the federal government’s $7000 First Home Owners’ Grant, the NSW Government offers further assistance for eligible first home buyers in the form of First Home Plus.
First Home Plus
The First Home Plus scheme provides eligible purchasers with exemptions or concessions on transfer duty and mortgage duty, with no duty payable on homes valued up to $500,000 and concessions on duty for homes valued between $500,000 and $600,000.
First Home Plus also provides exemptions and concessions for eligible purchases buying a vacant block of residential land valued for the purpose of building a home, with no transfer duty payable on vacant land valued up to $300,000, and duty concessions available for vacant land valued between $300,000 and $450,000.
Full mortgage duty concessions and exemptions apply to mortgages given to assist the purchase of property under First Home Plus.
To qualify for First Home Plus you must meet the following criteria:
  • The contract and the transfer must be for the purchase of the whole of the property
  • All purchasers must be ‘eligible purchasers’, that is, a natural person (ie. not a company or trust) at least 18 years of age who has not, and whose spouse/de facto has not:
  • At any time owned (either solely or with someone else) residential property in Australia other than property owned solely as trustee or executor; or
  • Previously received an exemption or concession under First Home Plus
  • At least one eligible purchaser must occupy the home as their principal place of residence for a continuous period of six months, commencing within 12 months of completion of the agreement
First Home Plus One – A Variation
First Home Plus One is a variation of the First Home Plus program.  From 1 May 2007, First Home Plus One allows eligible purchasers to buy property with other, ineligible parties and still receive a concession on their portion of the property purchase. To qualify, the eligible purchaser/s must buy at least 50 per cent of the property.
The value limits and purchasers eligibility criteria of First Home Plus apply. Transfer duty is calculated with reference to the proportion of the property purchased by other parties. However, this interest is disregarded if it is not more than five per cent.