The NT's First Home Owner Grant scheme was introduced on 1 July 2000 to assist first home buyers in the Northern Territory. To encourage the construction of new homes in the Territory, from 1 January 2015, FHOG will be available to first home buyers who enter into a contract to construct or purchase a new home, or commence construction of a new home, on or after that date.
FHOG is not means tested however, home purchase price thresholds may apply. Where the commencement date of the eligible transaction is between 1 January 2010 and 12 May 2014, to remain eligible the consideration for, or the value of the home must be under the transaction eligibility threshold (see table below). This includes the unencumbered value of the land on which a home is to be built.
Where the commencement date of the eligible transaction is on or after 13 May 2014, the transaction eligibility threshold does not apply to the construction or purchase of a new home but continues to apply to the purchase of an established home.
An established home is one that has been previously sold or occupied, and is lawfully fit for occupation.
There has never been a better time to buy a new home in the Territory, but what about an exisiting home?
From 24 May 2016 the First Home Owner Discount may be available for first home buyers who enter into a contract to purchase an established home. FIRST-home buyers will save as much $10,000 on existing properties in an imminent cut to stamp duty.
The Territory Government will forgo an estimated $5.5 million in stamp duty over more than a year as it moves to encourage first-time buyers into the existing home market and stimulate the sluggish property sector.
The FHOD provides eligible first home buyers who purchase an established home between 24 May 2016 and 30 June 2017 with a reduction of 50 per cent of the stamp duty otherwise payable, up to a maximum discount of $10 000.
An established home is one that has been previously sold or occupied, and is able to be lawfully occupied as a place of residence.
What Does This Mean For You:
The government has blamed the market slowdown on the mining industry, increased land releases, new housing supply and the withdrawal of interstate investors. Chief Minister Adam Giles said: "Housing affordability has improved under the Country Liberals, enabling the Government to reintroduce a stamp duty discount without distorting the market."
"Right now there's plenty of stock." Adam Hayes said. "I would thoroughly encourage any first homebuyer to take advantage of what our NT Government is offering right now."
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