Owning a home has always been the Great Australian Dream – and in 2023 there has never been a better time for First Home Buyers to get into the property market. The state of NSW’s robust real estate market offers a range of grants, schemes and opportunities designed to make the journey onto the property ladder as smooth as possible.

Opportunities for First Home Buyers –

As we enter a busy Spring period – it is shaping up to be a great buyer’s market as increased levels of stock are expected to arrive. This means that buyers will have a diverse range of property to choose from that will cater to various preferences and budgets. The key lies in conducting thorough research to identify what meets your unique goals and objectives.

Grants and Schemes [NSW] –

First Home Guarantee –

Under the First Home Guarantee Scheme – first home buyers are eligible to buy a home with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI).

• Must be first home (or have not owned a home in the last 10 years)
• Single applicant cannot earn more than $125,000 p.a.
• Dual applicants cannot earn more than $200,000 p.a. between them.
• Price cap for metro NSW is $900,000.
• Intend on being owner-occupiers of the property.

First Home-Owner Grant (New Home) –

This grant provides $10,000 towards the price of a new property. This applies whether you are buying or building your first home. This scheme can be used in conjunction with the First Home Buyers Assistance Scheme (stamp duty exemptions). There are some requirements –

• Must be a new home no-one has lived in before.
• Not worth more than $600,000 (or, for a house and land package with comprehensive building contract, no more than $750,000)
• You must move into the property within 12 months from settlement and live there for at least 12 consecutive months.

First Home Buyers Assistance Scheme –

This is a full or partial exemption of stamp duty.

• Must be first property in Australia.
• Up till $800,000 – stamp duty is nil.
• $800,000 – $1,000,000 a concessional rate applies.
• Must move into the property within 12 months from settlement and live there for at least 12 consecutive months.

Family Home Guarantee –

This is aimed to support eligible single parents or single legal guardians to buy a home sooner. This isn’t necessarily specific to First Home Buyers as applicants can apply if they have previously owned property, but it is a great option for single parents looking to get into the market.

• Minimum deposit required is 2%
• Max purchase price for metro NSW is $900,000
• Earning no more than $125,000 p.a.
• Intend on being the owner occupier – does not currently own another property.

First Home Super Saver Scheme –

An extremely under-utilised scheme in NSW that allows First Home Buyers to save for a property by making voluntary contributions (both before-tax concessional and after-tax-non-concessional) into your super fund to save for your first home.

• You can apply to have a maximum of $15,000 voluntary contributions from any one financial year to be released under the scheme. Up to a total of $50,000 contributions across all years.
• You will also receive associated earnings – meaning the investment earnings on those contributions.
• This is not contributions that your employer has made – they are voluntary from yourself. You can also consider salary-sacrifice and arrange this with your employer.
• There are also some great tax advantages to saving through your super.

As you can see – there is an abundance of opportunity for First Home Buyers to enter the market right now. With all the schemes available, it can be overwhelming to know what ones apply to you and your situation. That is where we can help.

We can provide you with the guidance of knowing what grants suit your goals and objectives – and even see if you can use more than one in conjunction with each other (this is quite common).

If you are curious to learn more about what may apply to you – please feel free to reach out to me directly on 0422 269 868 or sam@cliofinancial.com.au.