Being able to receive financial assistance or share a purchase with family or other non-eligible first home buyers may be a real help to you when purchasing your first home. 

Even if the other buyers are not intending on paying the mortgage or living at the property, having the second person purchase the property with you may be your only way of getting your foot in the door. But what do they get out of it and how can they protect their investment? Can they be a purchaser to the property even if they are not first home buyers? If so can you still get the benefits?

First Home Buyers Assistance shared equity arrangements allows eligible purchasers to buy property with other parties and still receive a concession on stamp duty. To qualify, the eligible purchasers must buy at least 50 per cent of the property, no less. The value limits and other eligibility criteria of First Home Buyers Assistance apply. Some stamp duty will still be payable however based on the proportion of the property purchased by other parties.

For example your parents may be contributing $30,000 towards your $300,000 home purchase. This may mean they will own 10% of the property and you will own 90% of the property. Your 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 share of which is approximately $900.

If the second ineligible 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.

The second purchaser cannot be an ineligible spouse or partner as this will mean that you are not an eligible first home purchaser; usually the second purchaser would be a parent or relative.

Please note the answers provided are for your general information only and we ask that you call our office on 02 6331 2911 to obtain detailed legal advice for your individual situation.