First Home Plus One NSW
The First Home Plus One NSW stamp duty concession scheme was introduced by the New South Wales State Government on May 1, 2007.
The schemes aim was to:
- Bring forward first home purchases.
- Bring about new transactions.
- Allow first home buyers to purchase a home of a higher value than they otherwise would have been able to do.
Upon its introduction the government stated that it would assist young families enter the housing market that would otherwise have been out of their financial reach as the saving on a home valued at $500,000 was $19,730.
The scheme therefore, besides assisting those wanting to purchase their first home, also created a significant stimulus into the property market generally.
The First Home Plus One NSW – main features.
The main features of the First Home Plus One concession scheme are as follows:
- Purchasers who are eligible to receive the concession can still do so even when in partnership with another party. (but the purchaser must have at least a 50% equity in the property).
- Transfer duty calculation depends on the amount of equity owned by each party. It is related to the proportion of ownership but is disregarded altogether if that proportion is not more than five percent.
- From September 1, 2007 any advance money given to a person to assist in his or her purchasing, or building of their first home, or buying a vacant lot with the intention of building, is not liable to pay any duty. No matter what the amount of advance being offered.
- A first home buyer can not access the benefits of First Home Plus One NSW if his or her spouse has owned a residential property previously, or had previously obtained a benefit under First Home Plus One, no matter if the spouse is involved in the purchase or otherwise.
- An eligible first home buyer must own at least 50% of the house or land involved.
- If a vacant lot purchase the value must not exceed $450,000.
- The total value of both house and land can not be more than $600,000.
- The usual residency rule apply in that at least one of the owners of the property must live in the house for at least six months within 12 months of settlement having taken place.
The First Home Plus One NSW – shared equity
Under the First Home Plus One concession scheme first home buyers who enter a shared equity arrangement with a lending authority or immediate member of one’s own family remain eligible for a proportion of the stamp duty exemption.
- Such equity partner can hold up to 50% equity in the property with the stamp duty exempted being applied only to the purchasers own interest in the property.
- Under the First Home Plus One scheme a purchaser with a 50% interest in the property valued at $500,000 would receive a concession valued at $9,865.
The continuing focus on giving benefit to first home buyers in schemes such as the First Home Plus One scheme has been found to be the most equitable way to foster activity and support to the housing industry generally, which at the same time assists young families to get out of renting, and into owning their own homes.
The First Home Plus One housing assistance scheme has served this purpose now for three years and has done just that for many thousands of first home buyers. People who, without this assistance, would still be renting. If you want to ensure your application to access the First Home Plus One concession benefits you are welcome to contact us now.
Related posts:
- Stamp Duty Western Australia
- Canberra Home Loans
- First Home Buyers Grant Northern Territory (NT)
- The NSW First Home Plus Grant Scheme
- First Home Buyer Stamp Duty
- Stamp Duty Exemptions and Rebates
- New Home Buyers Fact Sheet & Frequently Asked Questions (NSW)
- First Home Buyers Grant Tasmania (TAS)
- First Home Buyers Exemptions & Concessions (VIC)
- How to Pay Stamp Duty
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