EMBARGOED Andrew Constance med rel – First Home Buyers Boost begins

First-time buyers looking for a new home will have more choice when deciding on their purchase, with changes to the First Home Owners Grant coming into effect today.

House-hunters are now able to buy newly constructed homes valued up to $750,000, and remain eligible for the First Home Owners Grant.

“The previous grant cut-off was $650,000, but starting today, the threshold’s being boosted by $100,000”, NSW Treasurer Andrew Constance said.

“It means first-time buyers will have more options, and more choice, when they take the property plunge.

“We want to make it as easy as possible for first home buyers to get into the market, while we boost incentives for the construction of new housing stock.

As part of the NSW Government’s 2014-15 Budget, there are also large investments in local building projects that will unlock land for new housing supply. $83 million has been committed to the Housing Acceleration Fund, which will enable faster land release in Sydney’s south west growth centre.

“While giving first-time buyers more flexibility, we’re also increasing housing supply”, Mr Constance said.

The latest figures show the number of grants has increased significantly over the past financial year. First Home Owner Grants for new homes are 46 per cent higher in the five months to May 2014, compared to the same period the year before.

New data from the Housing Industry Association also shows the outlook for the home building sector is positive, with new house sales up 15.6 per cent in the three months to May 2014 compared with the three months to May last year.