NSW scraps First Home Owner Grant

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The NSW Government has scrapped the existing $7,000 grant for first homebuyers in its latest budget, but investors who plan to buy a new property will receive up to $35,240 worth of state-backed incentives in what has been labelled the most generous first homebuyer scheme in the nation.

The writing is on the cards for the existing First Home Owner Grant in NSW, meaning buyers of existing properties are set to lose out on $7,000 worth of free money from the government.

However, from 1 October, first homebuyers who opt for a new property worth up to $650,000 will see their grant more than double to $15,000. This amount will then drop to $10,000 from 1 January 2014.

Investors who already have property in their portfolio may too be enticed into taking the new property route, as non-first homebuyers will receive the newly-created $5,000 New Home Grant.

The upper threshold for stamp duty concessions for first homebuyers has also been increased to $650,000, to reflect Sydney’s median house price.

“For first home buyers of new homes, Building the State is the most generous scheme in Australia,” said NSW treasurer Mike Baird. “This scheme targets incentives where they are needed most, by shifting incentives to new homes.”

So, how much can you get from the NSW government? The maximum amount of money on offer in grants and tax breaks is a whopping $35,240. Scroll down to see a summary of first homebuyer benefits announced in the new NSW budget, and how they compare to the existing scheme.


 

Source: Building the State: Budget 2012-13

What do you think of the changes in NSW? Have your say by commenting below or venting on our property investment forum.

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Comments
  • Peter says on 12/06/2012 08:28:16 PM

    I think scraping the First Home Buyers Grant for the purchase of an existing home stinks and is grossly unfair for young people who are on below average incomes. How are they going to afford a brand new home with all the trimmings - the banks would only laugh them out of the Loan Managers office. The Liberal Govt. are forgetting about young people in regional areas who also would like assistance in getting into their first home, but can only afford a 'bread and butter' property, as their incomes are much lower than those working in the city. Having said this, we all know Property Developers are big donators to the Liberals, especially at election time. As much as the Labour Govt. did very little to improve infrastructure, health and education in NSW, at least they didnt discriminate between buying a new or existing property. What about the people who want to sell their homes, the only buyers will be Investors (who all want a bargain well below valuation), or owner/occupiers who are selling/buying for various reasons.
    Barry, please go back to the drawing board and start again. The Property Market in NSW badly needs a bomb under it, so please light the fuse and lets get cracking. Please dont be one sided, be fair and give everyone who wants to buy their first home a go.
    While I am on my soap box, what is the State and Federal Govts, going to do about regulating the Property Advisory Industry. They need to be treated and regulated in exactly the same way as the Mortgage Broker Industry. There are far to many cases of ordinary people being ripped off and conned by all these spruickers that are coming out of the woodwork.

  • Catherine says on 17/06/2012 07:10:18 PM

    Obviously the government have not thought this through properly and how can they possibly think young population are going to afford a brand new home , this is ridiculous! I'm in my early 20's looking To buy but how can I if stamp duty is just a rip off and you have to understand us young people have To live in this expensive country Australia has become we only just get by , by taking away the first home owners grant the government will just lose more no one will buy , people are investing in other countries as ours is just ridiculously expensive if the government want to push the young generation to buy homes they should really up the grant for second hand homes and throw away stamp duty . No young person can and will afford a brand new house so think the givernment is waisting there time in offering a not so good scheme that will not benefit any of us younger generation. The banks will laugh at us trying to get a higher loan than we can afford and that's what we ate looking at I'f we are being forced to buy brand new homes your looking at 600,000$ minimum and up and further away from the city . ! Seriously how are any of us going To afford that .

  • Joe says on 23/02/2013 02:04:15 PM

    Move to victoria!!! I live in albury and am considering that 10 km away in wodonga i can get the bonus but in my home state for an existing home i cannot???

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