Can I buy a unit off the plan using the first Home Owner Boost?

Q:

Q: I am retiring in 2012. I have more than 600,000 in super and have been salary sacrificing to boost that as I am on a good salary (more than $150k). I have never owned my own home as I have always rented inner city apartments. I now have an opportunity to buy a unit in Sydney off the plan but am not sure if this type of property will make me eligible for the Government’s First Home Owner’s Boost?

Our expert is Harry Granger a property investment consultant based on the NSW Central Coast.

A: The answer to your question is yes, assuming you meet the Boost eligibility criteria and so long as you enter into the contract before 30 June 2009 and the building is completed before 31 December 2010.

The Boost doubles the existing First Home Owners Grant from $7,000 to $14,000 for purchase of existing homes; and trebles the funds on offer to $21,000 for those building their own or buying a newly built dwelling – including purchases such as you are considering ‘off the plan’.

First home buyers can also receive a further $3,000 from the NSW government

Broadly speaking you’re eligible for the Boost if you and any joint applicant:

• are a person aged 18 or over
• are a citizen or permanent resident of Australia
• have never held an interest in residential property before.

You can use the Boost to help pay for any costs associated with buying your first home, including to supplement your deposit, for legal costs, stamp duty and so on.

You can also use it to buy a rental property, so long as you move into it within 12 months of settlement and stay for at least 6 months.

A ‘substantially renovated’ home that has not been lived in in its newly renovated form may also qualify as a ‘newly built’ dwelling.

The Boost applies only to contracts for sale entered into between 14 October 2008 and 30 June 2009 so you will need to make your decision soon.

You can find out more by visiting your state's Office of State Revenue – in your case, for NSW, at www.osr.nsw.gov.au