First-time buyers in NSW can now purchase new properties worth up to $750,000 to qualify for the $15,000 first home owners grant.
The changes came into effect on July 1 2014, raising the previous threshold of $650,000, which had been in effect since 2012.
For Sydneysiders this amount may not seem like much, with new houses or apartments easily reaching the threshold amount, however with the median price of a new property in NSW being around $650,000 a lot more first time buyers will now be able to benefit from the first home buyers scheme.
Of course, raising the threshold is likely to have minimal impact in regional areas like Mudgee where homes are available from $250,000 and brand new ones that qualify for a grant start from just $350,000.
The First Home Owner Grant (New Homes) scheme was introduced to help encourage the development of new dwellings in NSW and to help assist first home owners purchase a property, however the scheme possibly hasn’t been as successful as hoped.
According to government data, 100,000 new homes have been built since the March 2011 election, but first home buyers in NSW have been dwindling and its possibly because many are trying to save up more to be able to afford a new home and take advantage of the grant.
In 2013 around 7600 first time buyers took advantage of the scheme, compared to about 36,000 in 2011 when a $7,000 grant was available for new and established homes.
The first home owners scheme is beneficial if you are looking at buying a new house or apartment however, so for those in Mudgee who would like to take advantage of the scheme, you can find all information about eligibility and how to apply at www.osr.nsw.gov.au/grants/fhog.
First home buyers should also note that the scheme will be reduced to $10,000 on January 1 2016.
For anyone who is interested in finding a new home in the Mudgee region, please don’t hesitate to get in touch with one of the team at Professionals Mudgee Real Estate, we have a number of properties between $350,000 and $400,000 that are close to completion for anyone looking for their first home.