Tuesday, June 12, 2012

BUDGET CHANGES FOR FIRST HOME BUYERS

NSW is set to have the most generous first home buyer scheme in the country - provided you buy a new house or apartment.

The state government announced changes in the budget to more than double the first home grant to $15,000 for buyers of new property priced up to $650,000.

However, buyers of existing property are in for a nasty surprise. The $7000 first home owner grant - in operation since 2000 - will cease to exist.
This move is designed to motivate buyers to buy new rather than existing properties.

First home buyers of new houses and apartments will also continue to be exempt from stamp duty and it will now apply to properties worth $650,000, rather than the $600,000 previously.

The budget changes mean that, from October 1, first home buyers who purchase a new home priced at $550,000 can save up to $35,240, which is close to $20,000 more than the previous saving.

As expected, the government has now ended the stamp duty concessions for non-first home buyers of new properties.

But by way of compensation, it will offer a $5000 grant to purchasers other than first-timers - investors, upgraders and downsizers - for new properties priced up to $650,000.

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