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What is FHOG?


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The First Home Owners Grant (FHOG) - New South Wales


From 1 October 2012, first time buyers purchasing new property in NSW may receive grants and stamp duty exemptions worth up to $35,000 providing an opportunity to get a foothold in the market.

From an investor's perspective the impact on the Sydney market in fuelling demand is likely to be substantial.

From a first time buyer's perspective this presents a rare chance to short-cut the deposit gap and get a foothold in the Sydney market before it moves into the next upturn in prices. With a cash grant of $15,000 and stamp duty exemption of up to $20,000 it is currently possible for first time buyers with a modest level of savings to become property owners.

For those who want to get into the market the choice is clear, take advantage of the FHOG now or risk multiple years of saving while hoping the market doesn't take off in the meantime.
There are two components to the concessions:

1. First Home Owner Grant (FHOG)

From 1 October 2012, first home buyers purchasing new residential property below $650,000 are eligible to receive a Government grant of $15,000 upon settlement.

First home buyers purchasing second hand properties are no longer eligible to receive a grant of any amount.


Dates applicable Cap amount Grant Property type
1 Jan 2011 to 30 Sep 2012 $835,000 $7,000 New or existing
1 Oct 2012 to 31 Dec 2015 $650,000 $15,000 New only

2. First Home - Stamp Duty

From 1 October 2012 first home buyers purchasing new property below $550,000 or vacant land below $350,000 will be exempt from stamp duty.

First home buyers purchasing new property from $550,000 to $650,000 or vacant land from $350,000 to $450,000 will be eligible to receive discounts on stamp duty.

Stamp duty concession Purchase price Property type
Exempt up to $350,000 Vacant land to build
Exempt up to $550,000 New only
Discount* $350,000 to $450,000 Vacant land to build
Discount* $550,000 to $650,000 New only

* Stamp duty discounts are calculated based on purchase price. For each additional $1,000 in cost above the stamp duty exemption threshold the full exemption will be reduced by 1%. Example: a new home purchased for $560,000 ($10,000 above threshold) would receive a 90% discount on the applicable stamp duty.

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