Last year the NSW New Home Grant Scheme was introduced to stimulate the construction of new homes in NSW and remains open today to non-first home buyers and investors alike. Eligible purchasers can receive a $5,000 grant towards the purchase of a new home, a home off the plan and the purchase of vacant land on which a new home will be built.
To take advantage of the $5,000 grant, purchasers must fall into one of these categories:-
- The value of the new home must not exceed $650,000; or
- The value of the vacant land (upon which a new house will be built) must not exceed $450,000.
This means that a purchaser seeking to purchase a new home will be eligible if the agreement provides for the purchase of land that is the site of a new home which is complete and ready for occupation. A new home is a home that has not been previously occupied or sold as a place of residence, and includes a home that is a substantially renovated home. Whether a home has been substantially renovated needs to be determined in the particular circumstances because it is a defined term under the legislation.
Likewise an off the plan purchase is also eligible for the grant. An off the plan purchase involves a contract for the purchase of land intended to be used as the site of a new home, which is to be built before completion of the agreement.
And finally, a purchaser of vacant land that is intended to be used as the site of a new home and which is not an off the plan purchase may also be eligible for the grant if the value of the land being purchased does not exceed $450,000 and the laying of foundations for the home must commence within 26 weeks of settlement of the purchase of land.
The grant will not be available to purchasers if the new home, or the land on which the new home is located or to be built, is intended to be used for any purpose other than residential such as commercial, industrial or professional.
The above scheme should not be confused with the First Home—New Home scheme. If you are eligible for a stamp duty exemption/concession under the First Home – New Home Scheme, you cannot receive the $5,000 New Home Grant.
If you are considering buying a new home or vacant land to build your new home on there are conditions that apply and you should come and see our experienced property team who can help answer all of your questions, because Helping You is Our Business.
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