Good News for First Home Buyers!

Ready to get into the property market for the first time? Here’s some good news! You can now do it with the NSW Government’s First Home Buyer Schemes

Getting on the property ladder can feel daunting, particularly if you’re a first-home buyer. Buyers typically face several challenges in saving for their deposit: rising rents (as many are renting while they save for their home deposit), rising house prices and rising interest rates. It’s no wonder many are putting off purchasing their first home! Thankfully, the NSW Government has three initiatives to help give first-home buyers a leg up. Let’s look at the First Home Buyer Assistance Scheme (FHBAS), the First Home Owner Grant (New Home), and the Shared Equity Home Buyer Helper.

1. First Home Buyer Assistance Scheme (FHBAS):

The FHBAS offers a welcome reduction on your stamp duty (a tax levied on property purchases). This scheme applies to both new and established homes. If you’re a first home buyer:

·      purchasing an existing property valued at up to $800,000, you won’t pay any transfer duty.

·      purchasing a property valued between $800,000 and $1 million, you will pay a reduced rate.

These thresholds are regularly reviewed and adjusted, so checking the Revenue NSW website for the latest figures is crucial.

These savings can be significant, freeing up valuable funds for other expenses related to buying a home.

Who qualifies?

• You must be a permanent Australian resident or citizen over 18 years old.
• This is your first home purchase.
• You intend to occupy the property as your principal place of residence for 12 months.

2. First Home Owner Grant (New Home):

If you want to build or buy a brand new home, the First Home Owner Grant (New Home) will provide a one-off grant of $10,000 towards the purchase price of your first home. This grant can be a valuable boost for your deposit or help cover some of the legal fees and other associated costs with buying a property, such as pest inspections.

Who qualifies?

• Similar to the FHBAS, you must be an Australian citizen or permanent resident over 18.
• This must be your first home purchase.
• You plan to occupy the new home as your principal residence for 12 months.
• There are specific property value caps for eligibility, so check the Revenue NSW website for current details.

3. Shared Equity Home Buyer Helper:

This innovative program tackles the significant challenge of saving a large deposit and paying a large mortgage repayment, particularly for key workers, older adults and single parents. The Shared Equity Home Buyer Helper allows eligible buyers to purchase a property with a deposit as low as 2%. The NSW Government contributes a share of the purchase price (up to 40% for new homes and 30% for existing ones) in exchange for an equivalent interest in the property. This means there is no lender's insurance to pay, and the government’s up to 40% contribution means mortgage repayments are significantly reduced.

Who qualifies?

• This program targets specific demographics facing challenges entering the property market.
• Eligible applicants include single parents, single people over 50, victim-survivors of domestic and family violence, and first-home buyer critical workers like nurses, teachers, and police officers.
• Strict income caps and property value thresholds apply, so refer to the NSW Government website for details.

Please note:

• Each program has its eligibility criteria and limitations. Check the Revenue NSW website (https://www.revenue.nsw.gov.au/) for the latest information on thresholds and requirements.
• Remember, these schemes are designed to assist with the initial hurdles of homeownership. There will still be ongoing costs associated with owning a property, so it’s essential to budget carefully and have some financial planning in place to help you meet your goals.

Take that First Step to Home Ownership

The NSW first-home buyer schemes offer significant help for those looking to buy their first home. By understanding these programs and ensuring your eligibility, you can take advantage of the financial support available.

At RPN Global Sales, we can advise you on the appropriate scheme for your circumstances and even show you some of the beautiful homes on our list that fit your budget. We also have referrals to financial advisors and lenders who can guide you through the process and help you make informed decisions. With the right team around you, you can make your dream of owning your home a reality! Contact us today.