In what is good news for first home buyers intending to buy their first property, the NSW Government has announced that the First Home Owner Grant cap will be increased to $835,000 from 1 January 2011.
The $835,000 cap will apply to applications where the commencement date of the eligible transaction is on or after 1 January 2011. The commencement date of the eligible transaction is the date of the contract to purchase or build a home or, for a builder, the date the foundations commenced to be laid.
Applicants who purchase or build a home which has a total value of more than $835,000 are not be eligible for the grant.
The previous cap of $750,000 still applies where the eligible transaction commencement date falls between 1 January 2010 and 31 December 2010 (inclusive). Prior to 1 January 2010 there was no cap.
For eligibility criteria and other First Home Benefits go to www.osr.nsw.gov.au/benefits/first_home