5+ Property Schemes to Help You Buy Your First Home In Record Time: NSW & VIC

There are numerous incentives and opportunities for first home buyers to get on the property market. But what exactly is available and how can we make the most of the government programs currently on offer?

Now or Never to get your First Home?

We know that these are uncertain times and job stability is low. However we know from the previous financial crisis that many have been able to get on the property market during these times.

If you have the ability to buy, it really could be the best time to get your first home with all the schemes available and prices lower than usual.

Keep reading to find out what’s on offer in VIC, NSW and Australia wide.

Victoria

Here are three incentives if you are buying in Victoria:

1. First Home Owner Grant

• $10,000 First Home Owner Grant when you buy or build your first home
• The property must be valued at $750,000 or less
• The home must be less than 5 years old

You can check your eligibility for this grant on the State Revenue Office Victoria website.

2. First Home Buyer Duty Exemption, Concession or Reduction

Duty exemption and 50% duty reduction is available to a first home buyer when they buy a new or existing property in Victoria with a dutiable value up to $600,000.

The duty concession is where the dutiable value is between $600,00-$750,000.

For further information refer to the State Revenue website.

3. Off-the-plan Concession

This concession reduces the value of the property by the costs resulting from construction after the contract date. This reduces the amount of duty that you need to pay.

One of the following must be met to be eligible:

• First home buyer duty exemption or concession – the dutiable value of your property, after applying the off-the-plan concession, cannot exceed $750,000
• Principal place of residence concession – the dutiable value of your property, after applying the off-the-plan concession, cannot exceed $550,000

For more information on the requirements for this concession visit the State Revenue Website.

New South Wales

There are two key first home owner schemes in NSW:

1. First Home Buyers Assistance Scheme

• First Home Buyers building a new home $800,000 or less will not have to pay Stamp Duty,
  previously this was $650,000
• There are still Stamp Duty Savings for new homes valued over $800,000, which continues to reduce the higher the price tag. At $1 million + there are no savings.
• Changes apply to new builds and vacant land

Visit revenue nsw website for full details.

2. First Home Owner Grant

$10,000 Available for First Home Buyers for a property up to $600,000 or buying land and building a home up to $750,000 total.

Find out more about the eligibility for first home owner grant on the revenue.nsw website.

Australia Wide Schemes

1. First Home Loan Deposit Scheme (FHLDS)

This scheme is a federal government initiative to help first home buyers purchase their first home sooner.

Normally a buyer with less than 20% deposit would need to pay lenders mortgage insurance (LMI). This scheme allows first home buyers to purchase a property with as little as 5% deposit without having to pay LMI.

Eligibility requirements include:

• You must be a first home buyer
• You need to be an Australian citizen over 18
• Earn up to $125,000 per year or $200,000 as a couple
• Couples are only eligible if they are in a married or de-facto relationship
• Must have at least 5% deposit saved
• Must be owner-occupiers

For more information take a look at the National Housing website.

2. Home Builder Grant

The home builder grant is a federal initiative, however it is assessed by each State Government.

$25,000 for owner-occupiers who:

• Build a new home, or
• Substantially Renovate, or
• Buy off the plan/ new home

Eligibility:

• Building a new home does not exceed $750,000 (inclusive of GST)
• A contract with a builder to substantially renovate, where the contract is signed between 4 June 2020 and 31 December 2020
• Contract must start within 3 months of the contract date

For full details on the home builder grant, please refer to the treasury.gov website.

3. First Home Super Saver Scheme

This is another federal government scheme introduced in 2018 which allows you to save for your first home inside your super fund.

You can make voluntary contributions (along with the associated earnings) to help purchase your first home.

The limit is up to $15,000 voluntary contribution per financial year released under the scheme and up to $30,000 total (plus earnings related to the contributions).

For more information on the scheme visit the ATO website.

What Type of Property Could You Buy Under These Schemes?

Here is an example of a property that would be eligible under all of these various schemes, in New South Wales.

This 3 bed, 3 Bath, 1 Car in Gregory Hills, NSW is available from BlueTongue Homes is priced at just $585,000.

As you can see there are some amazing savings for a first home buyer purchasing a home such as this.

What grants could a first home buyer be eligible for on a property such as this?

• Home builder grant = $25,000
• First Home Owner Grant = $10,000
• First Home Loan Deposit Scheme = Pay 0 LMI
• First Home Buyers Assistance Scheme = Pay 0 Stamp Duty

Location Property Group have access to properties such as this in both Sydney and Melbourne, so feel free to speak with us if you would like to know more.

More property examples that could fall under these first home buyer schemes include:

• Melrose Park Sydney – 2 Bedroom Apartment
  To find out more about Melrose Park – Take a look at our Melrose Park blog post
• Highett Melbourne – 2 Bedroom Apartment
• Dickson Canberra – 2 Bedroom Apartment

If you are just starting to prepare to save for or buy your first property, be sure to have a look at this guide for first home buyers to get an understanding of the buying process.

It’s a wonderful feeling when you get the keys to your first home, and we can tell you; the search is well worth the wait. With so many government incentives and opportunities for some excellent property deals, now might be the right time for you!

If you would like to speak with us about our current range of properties that are suitable for the first home buyer schemes please contact:

Alan alan@locationpg.com.au | 0418 894 338.

Ajay ajay@locationpg.com.au | 0413 338 853.

Best of luck with your property search!