Tag Archives: NSW Real Estate Legislations

Changes to the NSW First Home Buyers Grant

Mudgee First Home Buyers may be interested to know that the NSW State Government has announced in the recent state budget that the first home buyers grant will be increased from $7,000 to $15,000 as of October 1st 2012. From January 1st 2014, the First Home Owners Grant will then be reduced to $10,000. This is welcome news for people entering the real estate market for the first time, however there is a catch.

The First Home Owners Grant will no longer apply for existing dwellings and will be focused directly on new dwellings. Therefore those who want to buy an existing home should take advantage of the current $7,000 grant on offer before it expires on September 30th 2012.

There have also been changes made to stamp duty concessions with full stamp duty concessions now only available for properties worth up to $550,000 (the current amount is $835,000). From $555,000 to $650,000, stamp duty concessions lessen by 1 percent for every $1,000.

Stamp duty concession for off-the-plan apartments and house and land packages will be scrapped in favour of a $5,000 payment to anyone who buys a newly constructed home and for vacant land purchases, stamp duty exemptions will apply for land valued up to $350,000, and concessions will apply up to $450,000.

The change in property concessions will likely encourage new home buyers to look to new homes over established ones and it has been brought in to help promote property development in NSW.

With all of the changes about to take place in property concessions, it’s important for first home buyers to think about their property needs and either wait for the new grant to come into place if they want to buy a new property, or make movements now if they’re interested in buying an established home.

If you’re a buyer and need assistance looking for homes in Mudgee please don’t hesitate to get in touch with us via our Professionals Mudgee Real Estate office.

If you would like to find out more about First Home Owner Benefits you research information released by the NSW State Government at www.osr.nsw.gov.au/benefits/first_home/.

Time to Sell Your Investment? Still got Tenants?

We’ve talked a lot on our blog about buying investment properties, but what about if you’re selling an investment property? And what if you have tenants? Don’t be daunted, we can help.
 
There are certain legal obligations that both the seller and the tenant need to be aware of. For instance, tenants must allow the property to be shown to prospective buyers a reasonable number of times and with at least 24 hours notice. Unless agreed to by the tenant, the property cannot be shown before 8am or after 8pm, on Sundays or public holidays.
 
It is important to ensure that Buyers who wish to reside in the property rather than purchase it as an investment for themselves, are aware of any leases in place as there are terms that legally have to be adhered to relating to the type of tenancy agreement in place at the time.
 
Fixed term tenancy agreements require 14 days notice to be given to vacate the property at the end of the tenancy term. Ideally you’d like to keep tenants in the property as long as you own it, so choosing to vacate them just prior to the settlement date (as long as 14 days notice as been given) is good for both the sellers (who capitalise on longer tenancy) and buyers (who take vacant possession).
 
Periodic or continuing tenancy agreements require 60 days notice to be given to the tenants or 30 days notice if you have advised the tenants of your intention to sell and then sign a contract of sale. If the Buyer is purchasing the property as an investment, once settlement has occurred, the new owner is entitled to the rental payments and is responsible for the property from thereon.
 
Tenants need to be prepared for the fact that if a buyer wants to move into a home they may need to move on once their lease expires, and should talk with the agent about whether they should expect a notice to vacate the property at the end of the tenancy. Whilst the agent may not know either way, it’s a good idea to keep the communication lines open.
 
Communication is important for all parties involved. A tenant who is kept up to date is likely to be far more co-operative during the sale. So take the stress out of selling your investment property by making sure you have qualified professionals in place to help you make sure you’re doing everything by the book.  
 
We’d love to talk to you, so please don’t hesitate to give the team at Professionals Mudgee Real Estate a call any time!