Time to get moving?
We were delighted to see NSW Treasurer Mike Baird announce that the $15,000 grant for first-time new home buyers is to be extended to January 2016 in the forthcoming state budget. You might look at this as a worrying sign that the mortgage market is slowing down, but for future purchases, now is prime time to get the best deal on your next property.
About the FHOG (new homes)
If you’re not already familiar with the grant - it was introduced by the Government to boost Australia’s home building industry. The market has not picked up as quickly as predicted and this is partly attributed to a slow-down in first time home buyer financing.
According to a media release issued by the Real Estate Institute of Australia (REIA), “In May of 2009, 31.4% of all purchasers were first home buyers. The figure from March this year
Is 14.2%.” The first time home owner grant for new homes was due to be reduced to $10,000 on 1 January 2014, but will now remain at a healthy $15,000 until January 2016.
What is a ‘New Home’ exactly?
According to the Office of State Revenue, a new home must meet the following criteria:
- No previous occupancy (by an owner, tenant or builder )
- No previous sale as a place of residence (where the home is being purchased, it must be the first sale of that home)
- It may have been substantially renovated or re-built to replace demolished premises.
What does the announcement mean for first time home buyers?
If you’re planning to purchase your first property in the next 12 months, you might want to consider buying new. A $15,000 handout will substantially increase your borrowing potential or alleviate the costs associated with moving. There are of course, some criteria set out for grant eligibility.
Find the right Conveyancer
When you do decide to take the plunge and buy a property, it’s vital that you seek help from the right conveyancer. Coutts Solicitors and Conveyancers can take care of all your conveyancing requirements – from preparing contracts for sale of land, investigating and negotiating current contracts and arranging comprehensive pest, building and survey reports (not required for new homes of course).