From 1 July 2012, a NSW New Home Grant is available to people buying new homes, whether they are newly built or off the plan purchases.
A $5,000 grant is available to the purchaser(s) of new homes (either off the plan or already built) with a value up to $$650,000. The $5,000 grant is also available to the purchaser(s) of vacant land, which is intended to be the site of a new home, with a value up to $450,000.
What does this all mean?
The following types of agreement or transfer are eligible for the grant:
- Purchase of a new home. This is an agreement or transfer of a property that is the site of a new home that is complete, and ready for occupation.
- Off the plan purchase. This is an agreement or transfer for the purchase of land intended to be used as the site of a new home. The new home is built before the completion of the agreement.
- A vacant land purchase. This is an agreement or transfer for the purchase of vacant land that is intended to be used as the site of a new home. This is not an off the plan purchase.
Under the previous first homeowner scheme, applicants were required to be a first time purchaser, and purchasing or building a new home.
Now, a purchaser could effectively purchase 5 off the plan homes, under the value of $650,000 and be entitled to 5 x $5,000 grants. There are no restrictions on the number of times you apply for the grant, so long as there is one grant per eligible property.
If a house is purchased off the plan, and a grant is received for that particular property, and subsequently sold prior to completion, there will be no further grant for that same property.
Further, if you knock down your existing home, and rebuild on the same parcel of land, this will not qualify for the grant.
The Office of State Revenue outline the following requirements to be eligible for the grant:
- The agreement for sale or transfer of a new home or vacant land will only be eligible for the grant if entered into after 1 July 2012.
- The new home must not have previously been occupied, or sold as a place of residence. A substantially renovated home may also be eligible.
- An agreement or transfer is eligible if it is for the acquisition of a new home that is complete and ready for occupation.
- For vacant land, construction must commence with the laying of foundations within 26 weeks after the agreement or transfer is completed, or within any longer period allowed by the Chief Commissioner.
- Applications for the grant must be made within 3 months of the date of the agreement or transfer (when there is no preceding agreement).
- The agreement or transfer must be for the whole of the land. If the land is a parcel of land on which two or more homes are built or a being built, the agreement or transfer must be for that part of the land that is an exclusive occupancy.
Who can apply for the grant?
The grant is available to any natural person, a company or trustee of a trust.
Foreign residents can apply for the grant, however, they would need to meet the requirement of the Foreign Investment Review Board regarding investing in Australia.
Owner occupiers and investors are also eligible to receive the grant.
How do I apply for the grant?
- You must submit an ‘Application for New Home Grant’ form within 3 months of the date of the first execution of the agreement or transfer.
- Documentary evidence to verify the purchase.
- Submit the documentation and application with certified copies of Identification such as: drivers licence, Medicare card, passport etc.
- If there is more than one eligible agreement, or transfer, a separate application is required.
There are also a number instances where the grant may not apply. So, if you are considering obtaining a grant, or even purchasing a property, contact our property law team at Anderson Boemi Lawyers for more information!