02/06/2017
Supporting First Home Buyers
The NSW Government’s comprehensive package to improve housing affordability is focused on helping first home buyers, who often face stiff competition from investors.
For first home buyers, this comprehensive package will:
• * abolish stamp duty on all homes up to $650,000
• * give stamp duty relief for homes up to $800,000
• * provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000
• * abolish insurance duty on lenders’ mortgage insurance
• * ensure foreign investors pay higher duties and land taxes
• * no longer allow investors to defer paying stamp duty on off-the-plan purchases.
• Stamp duty abolished or reduced. Save up to $24,740 on a $650,000 home
• Grant of up to $10,000 for builders of new properties worth up to $750,000 and buyers of new properties worth up to $600,000
• Insurance duty on lenders’ mortgage insurance abolished
• Surcharge on stamp duty doubled from 4% to 8% and surcharge on land tax from 0.75% to 2%
• Investors of any kind will no longer be able to delay for 12 months paying stamp duty on off-the-plan properties
Stamp duty relief
The duty paid when buying residential property can be an obstacle for first home buyers. For those entering the market, the NSW Government is abolishing this duty on new and existing homes worth up to $650,000.
For properties valued at between $650,000 and $800,000, the duty concession will be gradually reduced.
Concessions on vacant land will remain unchanged.
When do these stamp duty savings begin?
This change will take effect from 1 July 2017.
Contracts dated prior to the commencement of these reforms will continue to be eligible for the same grants, concessions, and conditions for which they would have been eligible had these changes not occurred.
First Home Owners Grant (New Homes)
First home buyers building a new property will be entitled to a $10,000 grant on homes worth up to $750,000.
First home buyers purchasing a new property worth up to $600,000 will be entitled to a $10,000 grant.
This policy aims to provide assistance to first home buyers and stimulate the construction of new dwellings.
The $5,000 New Home Grant Scheme, which was available to other buyers including investors, will be closed.
