Vital changes to the First Home Owner Grant will come into effect on July 1 2014 and you will need to be across them if yourself, or anyone in your network, intends on buying a first home in the near future. The changes are to the stamp duty levy for first homebuyers, which will see the stamp duty exemption threshold lowered from $500,000 to $430,000. A sliding scale stamp duty concession is available for properties worth between $430,000 and $530,000, with properties worth over $530,000 being subject to normal rates. It should be noted that the stamp duty exemption on new home and land packages remains unchanged.

In addition to this, changes are being implemented to the First Home Owners Grant, with payments to first homebuyers of established properties being reduced to $3000. For first homebuyers of newly built homes the grant payment has been increased from $7,000 to $10,000.

Why?

These changes to the First Home Owner Grant were brought into effect to stimulate the building industry further in Australia and provide property market growth for the economy.

Who do the changes affect?

These changes affect first homebuyers as well as those who work in the building industry. Both the stamp duty levy and First Home Owner Grant are schemes available to those purchasing their first property to live in, however members of the building industry will also need to be aware of these change.

What does this mean for you?

If you, or anyone in your network, are looking to purchase a first home, these changes may be of interest to you. When considering whether to purchase an established home, a newly built home or building the home, it is worth thinking about the stamp duty exemptions and First Home Owner Grant payment values available for each option. The changes to be introduced now mean that, for first homebuyers, the stamp duty exemption threshold is higher. The First Home Owner Grant payments are also higher for newly built homes and those building their homes compared with anyone purchasing an established property.

This is where Launch Finance can help. At Launch Finance we can find the right first homebuyer loan for you, whether it’s for a new home, a home under construction or an established home.