Paul Wrigley from Ray White Toronto has commented that he has seen an increase in First Home buyer activity in recent months. The latest change to the First Home Owner grant will be great for sellers and buyers in Toronto and surrounding areas.

A recent media release from the Real Estate Institute of New South Wales claims, in what is good news for first home buyers intending to buy their first property, the NSW Government has announced that the First Home Owner Grant cap will be increased to $835,000 from 1 January 2011.

The $835,000 cap will apply to applications where the commencement date of the eligible transaction is on or after 1 January 2011. The commencement date of the eligible transaction is the date of the contract to purchase or build a home or, for a builder, the date the foundations commenced to be laid. Applicants who purchase or build a home which has a total value of more than $835,000 are not eligible for the grant.

The previous cap of $750,000 still applies where the eligible transaction commencement date falls between 1 January 2010 and 31 December 2010 (inclusive). Prior to 1 January 2010 there was no cap.