Budget's first-home buyer $8,000 bonus might actually pause NSW new home purchasing until October

Despite the NSW government’s best intentions, sales of new houses and apartments to first time buyers might actually ease off until October 1.

Savvy first-home buyers might delay their new home acquisitions to secure an $8,000 bonus based on a $550,000 new dwelling.

The entitlement of first-home buyers who sign a purchase contract for a new home between yesterday's state budget and September 30 is $20,240 + $7,000 totalling $27,240.

But wait until October 1 and it’s $20,240 + $15,000, or a maximum total of $35,240.

The off-the-plan sales industry has been enjoying a sales fillip – compared with the rest of the Sydney market – in the lead-up to the initial June 30 deadline, which has now been rolled over until September 30.

They might just get an unexpected pause.

No doubt some buyers will seek to negotiate their way around the situation by seeking to put a red dot sticker on their desired abode and hope it doesn't get sold in the meantime. Getting an option to purchase is entering a legal minefield.

An eligible transaction is: (a) a contract made on or after October 1, 2012 for the purchase of a new home in New South Wales, or (b) a comprehensive home building contract made on or after October 1, 2012.

A contract for the sale or transfer is not eligible if it replaces an agreement made before October 1, 2012.

There are 11 important rules relating to eligibility.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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