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HomeBuilder Grant

2020-07-31T07:39:33+10:00

HomeBuilder provides eligible owner occupiers with a grant of $25,000 to build a new home, substantially renovate an existing home or buy an off the plan home/new home. A new home is one that has not previously been sold or occupied as a place of residence, (e.g. spec build) and where construction commenced on or after 4 June 2020.

About HomeBuilder

On 4 June 2020 the Australian Government announced HomeBuilder to provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home, substantially renovate an existing home or buy an off the plan home/new home.

The eligible contract must be signed between 4 June 2020 and 31 December 2020 (inclusive). Construction need not commence prior to 31 December 2020, however, must commence within three months of the contract date. Further, construction cannot have commenced before 4 June 2020.

The Australian Government HomeBuilder Grant is subject to the provisions of the National Partnership Agreement between the New South Wales Government and Australian Government.

HomeBuilder compliments Revenue NSW existing First Home Owner’s Grant (New Home) Scheme and First Home Buyers Assistance Scheme.

HomeBuilder Applications

HomeBuilder applications are to be lodged via an online portal, which will be available on this webpage shortly.

The application form and lodgement guide are provided as a guide to assist in preparing your application for lodgement via the online portal.

Applications must be received by no later than 31 December 2020.

Applicant(s) can lodge their application in a multi-step process with the initial lodgement being after an eligible HomeBuilder contract has been entered into. Once commencement of construction and the payment eligibility requirements milestones have been met, any additional supporting documentation should be lodged via the online portal.

Eligibility criteria

HomeBuilder Grant2020-07-31T07:39:33+10:00

First Home Owner’s Grant (New Homes) scheme – NSW

2020-07-31T11:25:42+10:00

You can apply for the First Home Owner Grant (New Homes) scheme (FHOG) through your bank or financial institution when you arrange finance to buy your home.

If you’ve already completed the purchase process or construction has commenced, you can send your application straight to us.

  • We’ll need to receive it within 12 months of settlement or the date constructed of your new home was completed.
  • We may also ask you to provide additional documents.

How to apply

Whether you’re applying through an approved agent or directly with us, you’ll need to complete the First Home Owner Grant (New Homes) Application form for eligible transactions during the following periods:

The application form has all the information you’ll need to lodge your claim.

Supporting documents

When you apply, we’ll ask you to provide some documents to support your claim. These include:

  • proof of identity
  • a copy of the contract, dated and signed by the seller
  • proof that this is the first time the home has been sold and that it has never been occupied – usually a statement from the seller or their legal representative.

If you’re building a new home, you must provide documents such as council approvals, building contracts or occupation certificates, and evidence of the land value.

Residence requirements

You or one of the other first home buyers must

  • move into the new home within 12 months after buying the property, and
  • live there for at least six continuous months.

If you’re buying land and building a new home, you must move in within 12 months after construction is complete.

If you’re a member of the Australian Defence Force may you may be exempt from the six month residence requirement, providing all buyers are on the New South Wales electoral roll. Contact us for more details.

Changes in living arrangements

If your circumstance change after you’ve received the grant and you no longer meet the eligibility requirements, you’ll need to pay back the grant. If you don’t, we may take you to court and you could a penalty of up to $11,000.

If you won’t be able to move into the house within 12 months or you can’t live there for six continuous months, you must let us know straight away and pay back the grant. Contact us to update your details.

Making false claims

We regularly check First Home Owner Grant applications for inaccuracies and compare your information to data from other government agencies and businesses. If you provide false or misleading information you may face a substantial penalty.

Objections and reviews

You can lodge an objection or request a reassessment if you’re dissatisfied with an assessment or decision we’ve made.

First Home Owner’s Grant (New Homes) scheme – NSW2020-07-31T11:25:42+10:00

First home buyers in NSW will be exempted from stamp duty for 12 months. Here’s how it will affect the market.

2020-07-31T07:02:31+10:00
  • New South Wales will exempt eligible homebuyers from paying stamp duty on purchases under $800,000 from 1 August.
  • Discounted stamp duty meanwhile will be available on properties up to $1 million.
  • The changes could see surging demand and properties begin to cluster around the $800,000 cutoff price, among other consequences

Australia’s biggest property market is stripping back stamp duty in one of the largest reforms in years.

Eligible homebuyers in New South Wales will be able to avoid paying tax when they purchase a property up to $800,000 until August 1, 2021.

Stamp duty has more than doubled in cities like Sydney over the last 15 years. As a result, homebuyers have been paying out tens of thousands of dollars more to the government at the same time property prices kept creeping higher.

As a result, Sydneysiders last year could expect to shell out more than $40,000 in stamp duty on the median house price. With much of the market above the $800,000 mark – often substantially – they will still need to.

However, for first home buyers looking at a lower price point, the tax exemption will no doubt provide some small relief.

In other words, the $20,000-$30,000 a homebuyer saves on the tax is simply extra money they can splash on a property, driving prices higher.

Sydney buyers, scrambling to lockup what few properties go for under $800,000 in 2020, could soon find themselves locked into a bidding war.

Properties could be increasingly priced near the $800,000 cutoff

It’s not just buyers who will respond to the incentive either.

“Research of sales volumes by price suggests that sales volumes tend to ‘cluster’ just under the cut-off point for complete stamp duty exemptions, so that first home buyers can avoid paying the tax,” Owen said.

This is exactly what happened when the stamp duty cutoff was $650,000, with the number of sales between $640,000 and $650,000 32% higher than the band below, and 49% higher than the band above.

It could actually slow down the market in years to come

Once the initial spike in demand passes however, there’s a risk the incentive could backfire.

While buyers under $800,000 can be exempt, stamp duty discounts are also available on purchases up to $1 million.

Most first home buyers are hardly going to be in the market in that range outside of Sydney, those that do might feel disinclined to move again.

“By incentivising first home buyers into a more expensive, and presumably larger home earlier in life, first home buyers may stay put for longer, in order to avoid paying stamp duty on upsizing down the line,” Owen said.

“This could extend hold periods, thus potentially reducing the amount of turnover that takes place in future.”

The policy should put some wind in the economy’s sails

Like federal schemes before it, one of the objectives of the exemption is to generate more work as the economy slows.

“[It’s] good news for those in the construction industry, and, considering the broad range of industry sectors involved in residential construction, there should be a positive flow through to economic activity,” Owen said.

As Australia lumbers through a recession, it’s certainly not before time.

Here’s what else it might mean for the market.

First home buyers will rush into the market again

The most obvious ramification is that the discount will drive more buyers into the softening market.

However, with a 12-month window, the measure might will likely create a “large but temporary spike” in demand, according to CoreLogic head of research Australia Eliza Owen.

“The increase in first home buyer participation over a limited time window may actually lead to an increase in values up to the cut off values for stamp duty concessions,” Owen said.

“This is because buyer competition could be increased in this segment while added incentives are on offer. Furthermore, the reduced transaction costs associated with stamp duty exemptions mean borrowers have higher purchasing capacity, which may just be added onto the purchase price while first home buyer demand is elevated.”

In other words, the $20,000-$30,000 a homebuyer saves on the tax is simply extra money they can splash on a property, driving prices higher.

Sydney buyers, scrambling to lockup what few properties go for under $800,000 in 2020, could soon find themselves locked into a bidding war.

Properties could be increasingly priced near the $800,000 cutoff

It’s not just buyers who will respond to the incentive either.

“Research of sales volumes by price suggests that sales volumes tend to ‘cluster’ just under the cut-off point for complete stamp duty exemptions, so that first home buyers can avoid paying the tax,” Owen said.

This is exactly what happened when the stamp duty cutoff was $650,000, with the number of sales between $640,000 and $650,000 32% higher than the band below, and 49% higher than the band above.

It could actually slow down the market in years to come

Once the initial spike in demand passes however, there’s a risk the incentive could backfire.

While buyers under $800,000 can be exempt, stamp duty discounts are also available on purchases up to $1 million.

Most first home buyers are hardly going to be in the market in that range outside of Sydney, those that do might feel disinclined to move again.

“By incentivising first home buyers into a more expensive, and presumably larger home earlier in life, first home buyers may stay put for longer, in order to avoid paying stamp duty on upsizing down the line,” Owen said.

“This could extend hold periods, thus potentially reducing the amount of turnover that takes place in future.”

The policy should put some wind in the economy’s sails

Like federal schemes before it, one of the objectives of the exemption is to generate more work as the economy slows.

“[It’s] good news for those in the construction industry, and, considering the broad range of industry sectors involved in residential construction, there should be a positive flow through to economic activity,” Owen said.

As Australia lumbers through a recession, it’s certainly not before time. Source Business Insider

First home buyers in NSW will be exempted from stamp duty for 12 months. Here’s how it will affect the market.2020-07-31T07:02:31+10:00

First-home buyers to take advantage of new government scheme in 2020

2020-07-31T07:01:32+10:00

There could be 20,000 first-home buyers in 2020

who buy their property with a deposit of as little as 5 per cent under the new federal government home loan deposit guarantee scheme.

The number of applicants across Australia will be capped at 10,000 every financial year, but as the initiative begins on January 1, there will be a double opportunity during 2020.

The 10,000 opportunities that allow low-and middle-income earners to participate on a first come basis from January 1 and then from July 1

Even with 20,000 likely participants in 2020, it is likely some 80,000 first-home buyers will need to find their own regular borrowing arrangements.

Sydney first-home buyers wanting to buy next year using the federal government’s new home loan deposit scheme will need to buy properties costing less than $700,000.

The price cap will also apply to the large NSW regional centres with a population of 250,000 plus, namely Newcastle, Lake Macquarie and the Illawarra around Wollongong.

Buyers in the rest of the state can spend up to $450,000 to be eligible to buy under the scheme.

The Sydney house median sits at $900,000 and for units it is $710,000 according to CoreLogic.

The scheme, to be known officially as the First Home Loan Deposit Scheme (FHLDS), will apply to owner-occupied loans on a principal and interest basis.

Many first-home buyers are already setting their hopes based on the already available stamp duty tax incentives and available grants, which is centred around a $650,000 purchase.

To be eligible for the (FHLDS) the contract of sale must be dated after January 1, 2020.

It removes the cost of lenders mortgage insurance for FHBs with an annual income of up to $125,000 or couples with a combined $200,000 per year who haven’t saved the standard 20 per cent deposit.

There are to be no more than two borrowers on any loan and where there are they must be the spouse or de facto partner of the other borrower. Off-the-plan purchases can be made under the scheme.

If the loan relates to the purchase of vacant land, it must also relate to the construction of a dwelling.

The scheme will only apply to Australian citizens.

The loan-to-value ratio will be between 80 and 95 per cent for loans not more than 30 years.

Repayments will be required for the principal of the loan for the full period except for construction loans where the loan agreement may permit interest-only repayments.

Any building contract requires construction commencement within 26 weeks of the settlement date and the issuance of an occupancy certificate within 15 months.

Treasurer John Frydenberg and Housing Minister Michael Sukkar have been credited with getting the balance right in recognising the variations in markets around the country, between metropolitan and regional areas.

It is however likely more loans will be for apartments than houses.

The National Housing Finance and Investment Corporation (NHFIC), who will be responsible for implementing the First Home Loan Deposit Scheme, is currently seeking lenders.

Source Daily Telegraph

First-home buyers to take advantage of new government scheme in 20202020-07-31T07:01:32+10:00

Premier Gladys Berejiklian announces housing affordability reforms

2020-07-31T07:01:47+10:00

First home buyers of existing and new properties costing up to $650,000 will be exempt from paying stamp duty and will receive stamp duty discounts for properties worth up to $800,000, both from July 1, under reforms announced by Premier Gladys Berejiklian to improve housing affordability in NSW.

As well, the 9 per cent stamp duty charged on lenders’ mortgage insurance – often required by banks lending to first home buyers with limited deposits – will be abolished.

To help first home buyers compete with investors, the government will also remove stamp duty concessions for properties bought off the plan.

In other measures, the stamp duty surcharge for foreign investors will be doubled to 8 per cent and on land tax surcharge lifted from 0.75 per cent to 2 per cent.

Currently in NSW there is a stamp duty exemption for first home buyers of new homes valued up to $550,000 and vacant land valued up to $350,000.

There is also a stamp duty concession for first home buyers of new properties valued between $550,000 and $650,000, and for vacant land valued between $350,000 and $450,000.

Changes to stamp duty concessions – which reintroduce stamp duty relief for first home buyers of existing properties – are estimated to deliver savings of up to $24,740 for a first home buyer in NSW.

Ms Berejiklian said it was hoped the package, expected to cost about $1.2 billion, would bring “thousands more” new first home buyers into the market over the next four years.

“This means the NSW government not only has taken seriously the task of addressing housing affordability, but we’ve acted on it,” she said.

“We know there isn’t a single solution; we know this is a complex challenge. We know how hard it is to save up for your first home, especially in greater Sydney and some regional areas.”

The package is the government’s first response to the issue of housing affordability after Ms Berejiklian declared she would make it a priority upon becoming Premier in January.

To boost housing supply, the government says it will halve the cost of borrowing by local councils for eligible projects via interest rate subsidies.

Planning Minister Anthony Roberts said this was expected to “support” up to $500 million in additional borrowing.

The government would also promote the “greater use” of independent panels by councils to consider development applications.

This follows a proposal put to cabinet by Mr Roberts on Thursday that independent panels become mandatory for most councils across NSW.

Instead, Mr Roberts said the government would now consult with the community about how to promote their use.

Premier Gladys Berejiklian announces housing affordability reforms2020-07-31T07:01:47+10:00
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