2015 is off to a strong start in the property market!
Sales are up and interest rates are at a 60 year low. It may be the perfect time for you to start your property portfolio and buy an investment property, or even build your first home.
There are a number of grants that are available in 2015 which you may be eligible for to help you on your way. If you are a First Home Buyer looking to buy a brand new home, or a vacant block of land to build your first home, you can apply for free stamp duty, and a $15,000 Grant. Whether you are upgrading, downsizing or an investor, for people buying a brand new home, or a vacant block of land on which a new home will be built, there is a $5000 New Home Grant available.
First Home – New Home scheme – Exemption or Concession from Stamp Duty
First Home Buyers purchasing a brand new home under $550,000 can apply for an exemption from Stamp Duty, or if the purchase price is between $550,000 and $650,000 you can apply for a discount on your Stamp Duty.
If you are buying a vacant block of residential land to build your first home for under $350,000 you can apply for an exemption from Stamp Duty, or if the purchase price is between $350,000 and $450,000 you can apply for a discount on your Stamp Duty.
First Home Owner Grant (New Homes) scheme – $15,000 Grant
First Home Buyers purchasing a brand new home, or vacant block of residential land to build your first home for under $750,000 can apply for the $15,000 First Home Owner Grant (New Homes). This will reduce to $10,000 on 1 January 2016.
To be eligible for the “First Home – New Home Scheme”, or “First Home Owner Grant” above:
- at least one buyer must be an Australian citizen or permanent resident
- the agreement must be for the purchase of the whole property
- you must be a natural person (not a company or trust)
- you must be over 18
- the home is a brand new home
- you or your partner have not previously owned property in any form in Australia
- at least one purchaser must occupy the home within 12 months and needs to live in the home for a continuous period of at least 6 months.
New Home Grant scheme – $5,000 Grant
If you are purchasing a brand new home (including “off the plan”), or vacant land on which a new home will be built then you can apply for the $5,000 New Home Grant. The Grant is paid by reducing your Stamp Duty costs, and if there is any money left over, then this would be paid to you by cheque.
You can apply for the Grant more than once, but it is limited to once per financial year. You can be a natural person, a company or trustee of a trust, and the grant is available to investors as well as owner occupiers. To be eligible for the New Home Grant:
- Applications must be made within 3 months of the date of exchange of Contracts.
- The value of the new home must not exceed $650,000 and the value of vacant land must not exceed $450,000.
- For vacant land, construction of the home (by way of laying foundations), must commence within 26 weeks after settlement of the purchase. However, there is no limit on the time of construction.
- You must be an Australian citizen, Australian resident or an Australian-owned body.
The above information has been simplified to make it easier to understand. There are however, firm requirements that must be met to be eligible for each benefit so if you would like to know more please contact the Office of State Revenue or I would love to hear from you.