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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