First Home Buyers Bad News

The NSW budget has delivered a blow to first home buyers.  From 1st January, 2012 first home buyers will no longer receive stamp duty exemptions or concessions if they are buying an established home.  The First Home Plus Scheme will be replaced by the First Home - New Home Scheme, which is intended to help people who are acquiring a new home that is their first home and exchange contracts after 1st January, 2012.  The new scheme will apply to the purchase of a first home which is a new home or a residential vacant block of land on which a first home will be built.  It can also apply to a substantially renovated home if it meets the eligibility requirements and has been substantially renovated and not previously occupied or sold as a place of residence.  The new home purchase price cannot exceed $600,000.00 and the vacant land price not over $450,000.00.  There is no time limit as to when buyers must commence or complete building on vacant land, but the dwelling must be occupied by at least one buyer as their principal place of residence for six months commencing within 12 months from the completion of the purchase. 

It's not all bad, first home buyers will still be eligible for the First Home Owner's Grant provided they meet the eligibility criteria.