First Home Buyer Assistance – Call the Experts

Buying a new apartment requires first-time buyers to acquire detailed knowledge of all the aspects of purchasing a property. In such a case, first home buyer assistance from experts can help you understand available government subsidies and incentive schemes so that you save money. 

What Is the First Home Buyer Assistance Scheme?

The First Home Buyer Assistance Scheme offers first-time property buyers a reduced transfer duty rate or a complete exemption in some cases. The benefits are available to anyone who is- 

• Purchasing a resale property 
• Purchasing a new apartment 
• Or planning to construct a property on an already owned land

For New Properties 

On purchasing a new property priced under $800,000, buyers are eligible to receive full exemption from the transfer duties.  Whereas, they are eligible for reduced transfer duties on purchases in the range of $800,000 to $1000,000. The sum will be determined by the market value of the property. 

For Resale Properties 

If you purchase a resale property under $650,000, you are eligible for full exemption from transfer duties. On the other hand, if you are buying a new property in the range of $650,000 to $800,000, you can benefit from reduced transfer duties. The sum will be determined by the market value of the property you are buying.

For Vacant Land

If the land is priced below $400,000, you do not have to pay a single penny as transfer duty. Also, you will get a discounted rate if the land is worth $400,000 to $500,000. 

Eligibility 

For first buyers in Sydney and all over Australia, the eligibility criteria for the scheme are-

• The construct should be signed on July 1, 2017, or later that, covering the entire property.
• For the contract to be eligible for elevated transfer duty, it should be dated between August 1, 2020, to July 31, 2021. 
• You should not be an organization, trust, or a corporation.
• Must be above the age of 18.
• You shouldn’t have been an owner or a co-owner of another residential estate in Australia with your partner.
• You or your partner shouldn’t have already received a concession or exemption from the same scheme.
• Of the two partners, at least one has to be a permanent resident or a citizen of Australia.
• One of you must start living in the purchased property within a period of 1 year.
• You should live there continuously for at least a period of six months.

Also, another major criterion is that the scheme applies when at least 50% of the buyers fall under the eligible category. If you are purchasing property with someone ineligible, make sure that others who are eligible are buying at least half a portion of the property. This type of arrangement is called equity arrangement. 

– Also, do note that shared equity does not apply to your spouse if they are an ineligible buyer. 

– If a person is not able to shift to the property within a year or fails to stay there for six straight months, the buyer will have to state the same while applying so that the right duties can be included during the payment. Otherwise, there can be possibilities of penalties.

– Huge penalties can also be charged in cases of false claims or misleading information during the application process. 

– Buyers can also raise an objection or even request for a reassessment if they feel that the decision made on your application was not satisfactory. 

Conclusion

Home buying assistance agencies and experts agree that the pandemic has only delayed, rather than completely suppressed, potential investors’ decision to buy a new property. The majority of people simply postponed their plans and needed proper first home buyer assistance after the end of the pandemic. 

Despite causing significant ups and downs in the real estate market, it still has recovered and proved to be profitable for investors and first-time buyers, courtesy of various government schemes and incentives. Quarter Acre’s property guidance and expert advice can help you find the ideal investment opportunity, besides additional savings.