The First Home Owner Boost Scheme offers an extra $7,000 for
first home buyers buying an established home (total grant $14,000)
and an extra $14,000 for first home buyers buying or building a new
home (total grant $21,000). The Scheme commenced on 14 October 2008
and ends on 30 June 2009.
The NSW Office of State Revenue tempers this bonanza with some
key limitations, first disclosed on its website on 22 October 2008.
At the time of writing, the revenue offices in other states have
not made similar disclosures, but the same limitations will apply
in each state and territory, as the Scheme is a national
News for Developers selling off the plan
The big news for developers selling off the plan is that first
home buyers will only be entitled to the $21,000 grant if the
contract either specifies a completion date prior to 31 December
2010 or is actually completed on or before 31 December 2010.
This restricts the pool of first home buyers who will be
entitled to the $21,000 grant to those who enter into a contract
between 14 October 2008 and 30 June 2009 and who buy into a
development which completes on or before 31 December 2010.
We suspect that first home buyers will keenly look at sunset
dates for practical completion in off the plan contracts during the
next 8 months as there will be a $14,000 cost difference between a
contract which completes in December 2010 and one which completes
in January 2011.
Building your own first home? You need to hurry
The big news for those building a new home themselves is that
you must commence building on or after 14 October 2008 but before
30 June 2009 and construction must be completed within 18 months of
Buyers of established homes
For those seeking to take advantage of the $14,000 grant for
buying an established home the conditions are simpler, you just
need to have entered into a contract to buy the home between the
dates 14 October 2008 and 30 June 2009.
Warning for unlucky first home buyers
The big news for some first home buyers is that the Office of
State Revenue will not allow you to claim the increased grant
amount if a contract entered into post 14 October 2008 replaces a
rescinded contract made before 14 October 2008 to purchase the same
or substantially similar home.
Accordingly, all first home buyers who entered into contracts
prior to 14 October 2008 can consider themselves unlucky to miss
out. Particularly, we feel for those who exchanged contracts on
say, 13 October 2008.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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