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Benefits available in 2014

As we start a new year with wonderful possibilities you may be wondering if it’s the right time for you to buy or sell this year. Interest rates are low, the housing market is strong and there are a number of grants that are available in 2014 which you may be eligible for to help you on your way.

The government, unfortunately, is not currently offering very supportive incentives to First Home Buyers to assist them in taking the first step into the property market, which I strongly hope they reconsider. For now the only benefits available are for First Home Buyers who can afford to buy a brand new home, or a vacant block of land to build their first home. If you are one of these lucky first time home buyers you may be eligible for free stamp duty, and a $15,000 Grant.

For people buying a brand new home, whether you are upgrading, downsizing or an investor, there is a $5000 New Home Grant available. Also, for people moving from a metropolitan area and buying a home in a regional area there is a $7000 Regional Relocation Grant.

Sometimes that little bit of extra assistance can really make a difference, so I’ll summarise the benefits available in 2014 for your consideration.

First Home - New Home scheme

First Home Buyers purchasing a brand new home under $550,000 can apply for an exemption from Stamp Duty, or if the purchase price is between $550,000 and $650,000 you can apply for a discount on your Stamp Duty under this Scheme.

 

If you are buying a vacant block of residential land to build your first home for under $350,000 you can apply for an exemption from Stamp Duty, or if the purchase price is between $350,000 and $450,000 you can apply for a discount on your Stamp Duty under this Scheme. 

 

First Home Owner Grant (New Homes) scheme

First Home Buyers purchasing a brand new home, or vacant block of residential land to build your first home for under $650,000 can apply for the $15,000 First Home Owner Grant (New Homes) under this scheme.
 
To be eligible for the First Home New Home Scheme, or Grant above:
  • at least one buyer must be an Australian citizen or permanent resident
  • the agreement must be for the purchase of the whole property
  • you must be a natural person (not a company or trust)
  • you must be over 18 
  • the home is a brand new home
  • you or your partner have not previously owned property in any form in Australia
  • at least one purchaser must occupy the home within 12 months and needs to live in the home for a continuous period of at least 6 months.
 
New Home Grant scheme

If you are purchasing a brand new home (including “off the plan”), or vacant land on which a new home will be built then you can apply for the $5,000 New Home Grant under this Scheme. The Grant is paid by reducing your Stamp Duty costs, and if there is any money left over, then this would be paid to you by cheque.

 

There are no restrictions on the number of times you can apply for the Grant, so if you are an investor considering purchasing more than one new home, then you can apply for the $5,000 New Home Grant Scheme each time! You can be a natural person, a company or trustee of a trust, and the grant is available to investors as well as owner occupiers.

 
To be eligible for the New Home Grant: 
  • Applications must be made within 3 months of the date of exchange of Contracts.
  • The value of the new home must not exceed $650,000 and the value of vacant land must not exceed $450,000.
  • For vacant land, construction of the home, by way of laying foundations, must commence within 26 weeks after settlement of the purchase. However, there is no limit on the time of construction.
 
Regional Relocation Home Buyers Grant
If you are purchasing a residential home in a Regional “Country” Area and selling your current home or moving from a rental property in a Metropolitan “City” Area then you can apply for the $7,000 Regional Relocation Home Buyers Grant. There is no price limit on sale of the metropolitan home. Application for this grant can be made after purchasing the regional property and your name is on the title deed. The Grant is paid electronically into your account within 21 days from application.
 
This is a list of Metropolitan “City” Areas: 
  • the Sydney metropolitan area (incl Ashfield, Auburn, Bankstown, Blacktown, Blue Mountains, Botany Bay, Burwood, Camden, Campbelltown, Canada Bay, Canterbury, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Lane Cove, Leichhardt, Liverpool, Manly, Marrickville, Mosman, North Sydney, Parramatta, Penrith, Pittwater, Randwick, Rockdale, Ryde, Strathfield, Sutherland Shire, Sydney, The Hills Shire, Warringah, Waverley, Willoughby, Wollondilly, Woollahra and Wyong)
     
  • the Newcastle local government area                   
     
  • the Wollongong local government area.
 
Regional “Country” Areas are participating local government areas outside the above, and if you are uncertain of the Council Area for the home you are selling or buying, you can conduct a 'Local Council Search' through the Division of Local Government website. Please note that the Byron local government area, although regional, opted out of the scheme.
 
In 2014 they have broadened the Grant so that where the metropolitan home is sold and 2 regional properties are purchased, applications for both properties may qualify. However in 2014 they have also applied a minimum distance requirement of 100 km between the metropolitan home and the regional home to be eligible to receive the grant.
 
To be eligible you must:
  • be a natural person (not acting in the capacity as trustee)
  • at least one applicant must be an Australian citizen or permanent resident.
  • have bought a regional property for less than $600,000 for a home, or less than $450,000 for vacant land.
  • start living in the regional property within 12 months from the purchase, for at least 12 continuous months. If you have purchased vacant land you must commence construction of your home within 6 months and be residing in the home within 12 months of the date of purchase
  • have lived in your metropolitan home in the 12 months before purchasing your regional property. The metropolitan home must be sold in the 12 months before or after the purchase of the regional property, OR
  • have been renting a home in a metropolitan area in the 12 months before purchasing your regional property and can establish a 2-year continuous rental history in this and other metropolitan homes.
The above information has been simplified to make it easier to understand. There are however, firm requirements that must be met to be eligible for each benefit so if you would like to know more please contact the Office of State Revenue http://www.osr.nsw.gov.au/contact or I would love to hear from you.
 
I encourage comments and also invite you to be involved and ask any questions or suggest a future topic.

   

Helpful Link

 

http://www.osr.nsw.gov.au/grants 

 
 

Why I love my job as a Licensed Conveyancer

Posted 15 Jan 2014

 

Hi, my name is Natalie Mason and I am a co-owner and licensed conveyancer at Conveyancing Services.
Welcome to my blog - Conveyancing Conversations!
 
I started work fresh out of school with Conveyancing Services as a receptionist and found the staff friendly and funny - it was a great place to work! Conveyancing, on the other-hand was a minefield of words I’ve never heard and legal documents that I had never seen. Can it really be this complicated just to buy a house I wondered?
 
It was all fascinating to me! At the time I was saving to buy my first home myself and loved that every day I went to work I would learn something new, a helpful tip, or an issue to be wary of. I love that every client I speak to has a different story, and that no two conveyancing transactions are ever the same. Even today with thousands of conveyances under my belt, I still go through Contracts and go wow, I’ve never seen that before and I enjoy the challenge of finding out the answers.  
 
After 2 years at the company I knew I had found my home and I began studying Conveyancing Law and Practice at Macquarie University. I wanted to become a conveyancer because I wanted to help people with such an exciting time in their life. Also, I wanted to get my hands onto those Contracts. This magical stack of paper that makes you the owner of your own little piece of Australia!
 
I have now worked in the conveyancing industry for 13 years. It’s been over 6 years since I graduated from Macquarie University and became a Licensed Conveyancer. My business partner Tony Morris is a highly respected conveyancer and was issued one of the first conveyancing licenses when the legislation was first passed in 1992. Last year Tony and I were very proud to become the owners of Conveyancing Services.
 
Conveyancing Services is one of the longest established conveyancing firms in NSW and as a leader in the conveyancing field we wanted to write a blog to help demystify the conveyancing process for people and give something back to the industry that supports us.
 
Every fortnight we will be sharing our experience and advice on the many various topics that can arise when you are looking to buy or sell property.
 
We encourage comments and also invite you to be involved and ask any questions or suggest a future topic.

 
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