Are you a millennial that is daunted by the current property market? If so, the First Home Owner Grant (FHOG) could enable you to enter the property market sooner than you may have thought!
The new FHOG scheme (NSW) can save you up to $32,000 if you are eligible and buy at the right price. The scheme includes a grant amounting to $10,000 if you are purchasing a new property up to $600,000 or building a new property up $750,000.
Here is example of how much the FHOG and stamp duty exemption can save you if you are purchasing a home in NSW:
|
Purchase price |
Ordinary Stamp duty (NSW) |
Stamp Duty Saving plus grant ($10,000) for new homes |
Stamp Duty Saving for existing homes |
|
$500,000 |
$17,990 |
$27,990 |
$17,990 |
|
$550,000 |
$20,240 |
$30,240 |
$20,240 |
|
$600,000 |
$22,490 |
$32,490 |
$22,490 |
|
$650,000 |
$24,740 |
$24,740 |
$24,740 |
|
$700,000 |
$26,990 |
$16,500* |
$16,500 |
|
$750,000 |
$29,240 |
$8,250* |
$8,250 |
*Above $650,000 the FHOG is non-applicable and the stamp duty concession is reduced.
There are additional savings for LMI applicants. You can find out more details about this here. For those living in other states simply go here and click on the state that is applicable to you.
As depicted in the table above, it’s most beneficial if you are to purchase a new home for $600,000 or less. You may feel “$600,000 will barely get me a one bedder in Sydney”, which is true, if you want to live within 50km of the CBD. However, if you think realistically do you absolutely need to live that close to the CBD? The thing is there are needs and wants that we all must balance and given the opportunity of saving up to $32,000 it might be worth considering altering your lifestyle or relocating in order to purchase your first home.
Down the track you could potentially turn your residence into an investment property, after you have lived in it for 6 continuous months within the first 12 months of completion (minimum criteria). This gives you greater flexibility for your lifestyle as you may change jobs, get married or simply wish to move somewhere else.
For more details see the attached document about the FHOG scheme where you can check your eligibility. If you have any questions regarding the scheme or how to obtain finance for your home don’t hesitate to contact us.
Food for thought, if you think not eating smashed avocados ($18) or drinking coffees ($4) are going to rapidly increase your savings, think again as $32,000 equates to about 1,777 smashed avocados or 8,000 coffees worth of savings!