Can I buy with my parents and still be eligible for first home benefits? Receiving financial assistance from a family member or other non-eligible first home buyer may be the only way you can get your foot in the real estate door. How does this affect your eligibility for First Home Buyers Assistance?
First Home Buyers Assistance shared equity arrangements allow eligible purchasers to buy property with other parties and still receive a concession on their stamp duty. To qualify, the eligible purchasers must buy at least 50% of the property. The value limits and other eligibility criteria of First Home Buyers Assistance still apply.
For example, your parents may be contributing $40,000 towards your $400,000 home purchase. This may mean they will own 10% of the property and you will own 90% of the property. Your 90% share will be exempt from stamp duty if you meet the criteria of a first home buyer, however stamp duty will still be payable on your parent’s 10% share. The stamp duty payable would be around $1,349, still offering a saving of around $12,141.
Transfer duty is calculated with reference to the proportion of the property purchased by other parties who are non-eligible first home buyers. However, this interest is disregarded if it is not more than 5%. Therefore, if the non-eligible purchasers do not purchase more than 5% of the property, no duty will be payable and you may still be eligible to receive the $10,000 first home owner’s grant subject to the criteria of that scheme being met.
If you would like to know how we can help you buy your first home, contact the office.
Please note answers provided are for your general information only and you should call our office on 02 6362 5433 for detailed advice.
