Tag Archives: home owner grant

MFAA Social Media Speech

I just had the great privilege of speaking to 30 plus local brokers at the Regional MFAA seminar held here in Wagga Wagga.

The MFAA (Mortgage and Finance Association of Australia) have accredited brokers who pride themselves on being up to date with industry best practice and legislative compliance as well as providing outstanding service to their clients.

My presentation was on the local real estate market and the majority was about social media changes and the need to be a part of online and social media marketing as consumers change their purchasing habits and online presence becomes more and more important to running a profitable business.

It was a bright and energetic audience with great questions and an open mind to new ideas on consistency and reach of online marketing and social media strategies.

I highly recommend that if you are in the process of screening brokers for your purchasing needs, you check that they are a member of the MFAA first.

Guest Blog – Commins Hendriks Solicitors

First Home Owner Grant – Altered arrangements

Date of commencement:  1 October 2012

 

From 1 October 2012, the First Home Owner Grant will only be payable on the following eligible transactions:

 

  1. a contract made on or after 1 October 2012 for the purchase of a new home in New South Wales, or

 

  1. a comprehensive home building contract made on or after 1 October 2012 by the owner of land in New south Wales, or by a person who will on completion of the contract be the owner of land in New South Wales to have a new home built on the land; or

 

  1. the building of a new home in New south Wales by an owner builder if the building work commences on or after 1 October, 2012.

 

new home is a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home (further defined in the Act) and a home built to replace demolished premises (also further defined in the Act).

 

contract made on or after 1 October, 2012 is not an eligible transaction if it replaces a contract made before 1 October 2012 and the replaced contract was for the purchase of the same home or was a comprehensive building contract to build the same or a substantially similar home.  The contract would be taken to have commenced at the commencement date of the replaced contract.

 

First Home Owner grant cap

 

From 1 October 2012 the amount of the first home owner grant cap is $650 000, unless another amount is prescribed by the regulations.

 

Amount of Grant

 

The amount of the first home owner grant is:

 

  1. in the case of an eligible transaction with a commencement date on or after 1 October 2012 but before 1 January 2014 – $15 000 or
  2. in the case of an eligible transaction with a commencement date on or after 1 January 2014 - $10 000

 

Eligible transactions entered into prior to 1 October 2012 will be subject to the requirements of the Act as in force immediately before its amendment.

 

Up until 30 September 2012 a First Home Owner Grant of $7000.00 will continue to be payable on existing homes, new homes and building contracts.  From 1 October 2012 onwards no First Home Owner grant will be payable in relation to existing homes that are not new homes.

 

If you have any questions or would like to comment in relation to the above matters, please do not hesitate to contact us.

Glen Lollback                                                

Solicitor Director

Ph: (02) 6933 6936

g.lollback@chlaw.com.au 

comminshendriks.com

1800 643 779

Michael Commins

Solicitor Director

Ph: (02) 6924 1611

m.commins@chlaw.com.au 

Tammy Holzheimer

Solicitor Director

Ph: (02) 6933 6943

t.holzheimer@chlaw.com.au 

Nick Wood

Final Year Law Clerk

Ph: (02) 6933 6958

n.wood@chlaw,com.au

Mary-Beth McFarlane

Solicitor

Ph: (02) 6933 6988

m.mcfarlane@chlaw.com.au         

Helen McRorie

Licenced Conveyancer

Ph: (02) 6929 3010

h.mcrorie@chlaw.com.au

 Debbie Boardman

Law Clerk

Ph: (02) 6947 1966

d.boardman@chlaw.com.au

 

About Myself

Adam Drummond has been listing and selling Wagga property for over 10 years. Play Adam’s profile clip to find out how he approaches the buying and selling experience.
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Why First Home Buyers Should Buy Now!

When I first heard about the First Home Owner Grant increasing from $7,000 to $14,000 for existing homes and from $7,000 to $21,000 for new or off the plan properties in 2008 with a further $3,000 supplement for any purchase bringing the grand total of the grant to either $17,000 or $24,000, my initial reaction was not as you’d expect. I’m a real estate agent and I was NOT excited. I was worried. The reason I was worried? Massive incentives bring with them, massive interest that turns into massive panic (as the end date looms) and finally massive competition which doesn’t just stimulate the real estate activity, it also inflates it. “Inflate” is a good word too, as it means “blow up” – and what happens when things are blown up too much – things burst. So, yeah I was concerned. The difficult thing with Governments attempting to stimulate the market, is that different markets have different levels of activity. Wagga Wagga at the time was performing pretty consistently on its own without the need of help. However Metro markets were stagnant and needed some propping up…all the way up! So we went through the phase of First Home Buyers competing against one another, prices rising and sales being made. Then the grant ended at the end of 2009 and we have been in the slow lane ever since. However, small incentives are sweet and do not carry the same level of hysteria that goes on with the massive ones we just mentioned. One of the key elements of NSW first home ownership that often gets swept under the carpet, is the free stamp duty for any purchase up to $500,000. To put into perspective that is a saving of up to $18,000. On a Wagga Wagga property sitting in the median house price range of $330,000, it’s a saving of a little over $10,000. Now come January 1st 2012, this stamp duty saving will be gone. The $7,000 will remain (Federal Grant), but the State grant of free stamp duty will be no more. Without sounding like a Real Estate Agent (although I am and I will) buyers looking for their first home should buy now! It’s a great step into the property market for the following reasons:

a) No stamp duty if exchanged by 31st December 2011

b) The market has already come back in some cases up to 10% so you have better prices out there than 12-18 months ago

c) Interest rates are still at record lows

d) The number of properties to choose from right now in your price range is ridiculous – take your pick

In short, do research on prices, visit as many properties as possible, get finance approved verbally from a lender, and make an offer. Good Luck.