First Home Benefits & Residence Requirements NSW
The NSW First Home Benefits and First Home Plus initiatives are set up by the government to encourage home ownership by giving you a helping hand to make that home purchase you’ve been waiting to make. If, however you find yourself in a situation, where due to an unforeseen circumstance you are not meeting the requirements then don’t fret. Because in times such as these the government can apply leniency from some of the conditions of the FHOG. This article will outline how to comply with the requirements and keep you out of trouble.
What are the residence requirements for the First Home Benefits?
All of the government’s first home owner schemes have residency requirements that need to be complied with, so you need to be informed about what you are required to do.
- Residence requirements – Under the First Home Owner Grant Scheme, at least one applicant must occupy the home as their principal place of residence for a continuous period of six months commencing within 12 months of settlement or construction of the home.
- Buying an existing home – If you are buying an existing home you are required to occupy the property as their principal place of residence for a continuous period of at least six months, beginning within 12 months after completion of the home.
- What happens if you purchase vacant land? In the case of vacant land, the government need to be satisfied that the vacant block of land is intended to be used as the site for your home.
What happens if I am unable to move into my first home, or wish to rent it out?
- Are you allowed to rent out your home? – You may rent out your first home before you move in, provided that you occupy it as your principle place of residence within the specified 12 month period.
- What happens if you are unable to move in within the specified time? – If, for some reason, you are unable to move into your new home within 12 months and still intend to occupy your home as your principal place of residence in the future, you need to forward an extension application before the end of the 12 month period. Because things do happen that prevent you from fulfilling your plans, there are allowances that can be made which give you some leniency in regards to the requirements.
- What happens if you are unable to move in at all – If, after receiving a first home benefit, you are unable to move into your new home at all, you need to promptly apply for a consideration that waives the residency requirement.
What happens if the residency requirement is not met?
If the residency requirement is not met and you have not been granted an extension of time or had the requirements waived, then within 14 days of the end of the 12 month period you must:
- Give written notice – Give written notice of this fact to the Chief Commissioner, and
- Pay back the Grant – Pay back the grant and/or relevant duty to the Chief Commissioner. The relevant duty is the amount you saved as a result of an exemption or concession on transfer and mortgage duty.
- If you fail to meet the conditions but don’t tell the commissioner –If this is the case then and you do not inform the commissioner within a reasonable amount of time you are committing an offence and you may be required to pay back: the grant, interest of up to 11.30%, and in some case your grants administration fees. If you have knowingly disregarded the grants requirements you can be criminally prosecuted.
As a first home buyer you want things to run as smoothly as possible. So when you have received your grant you need to know what is required of you, and how to fulfill these requirements. Therefore make sure you’re informed, and stop yourself from being caught out by contacting Home Loan Finder now for more information.
Related posts:
- Occupancy Rules Pertaining To The FHOG
- Revenue Circular – Commissioner’s Discretions (ACT)
- Important Differences Between the Grant and First Home Concessions
- First Home Owner Grant Overview (VIC)
- Eligibility Criteria First Home Owner Grant (NT)
- First Home Owners Grant Eligibility requirements NSW
- New Home Buyers Fact Sheet & Frequently Asked Questions (NSW)
- FIRB Approval – Definition & Requirements
- NSW Home Builders Scheme homebuyer.nsw.gov.au/
- The NSW First Home Plus Grant Scheme
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