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Grant rises of 11% for new NSW ...

Grant rises of 11% for new NSW homeowners

Homeowners in New South Wales (NSW) are growing in number, with more grants being handed out to support people setting up their first home. 

According to figures issued by the NSW government, there was an 11 per cent increase in first homeowner grants over the last financial year.

An announcement was made by the NSW government last week (August 11th) - and Treasurer Gladys Berejiklian suggested this could be due to demand for particular types of property. 

She explained that there has been a rise in supply of houses and apartments, which could be attracting new people to the area. 

"We have consistently said that supply is the key to putting downward pressure on prices," Ms Berejiklian remarked.

"Our policies to encourage the construction of new homes are clearly bearing fruit, with residential building approvals soaring by 10.5 per cent over 2015-16."

In the last financial year, an estimated 900 more first homeowner grants were given out compared with the corresponding figure for the previous 12-month period. 

The value of the grants also increased by approximately 12 per cent, taking the total outlay to $138 million, according to Ms Berejiklian.

"This is by far the strongest result among the states, with more than 70,000 NSW homes given the green light for construction last financial year," she remarked. 

One of the main aims of the first homeowner grant scheme is to encourage a general increase in housing supply - and this appears to be having some impact. 

Some $10,000 is offered towards the construction or purchase of newly-built homes that are valued up to $750,000.

Some stamp duty relief is also offered as part of the scheme, with concessions available on land valued between $350,000 and $450,000. 

Successful grant applicants who purchase a vacant plot of residential land on which to build their first home are not required to pay any stamp duty on land valued beneath the $350,000 measure. 

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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