More Savings For First Home Buyers in NSW
The NSW Government has announced a new incentive for first home buyers. At present, any properties purchased for a figure of $650,000 or less receive a full stamp duty exemption. For properties up to $800,000, discounts apply.
The new incentive increases this stamp duty exemption for those purchasing new properties. As of 1 August, for a period of 12 months, any new properties purchased for a figure up to $800,000 will receive a full stamp duty exemption. New properties purchased for up to $1mil will have some stamp duty reductions.
So for those buying a property up to $800,000, there is a potential saving for first home buyers of up to $30,000. This could fast- track the opportunity for first home buyers to get into the market as they will only need their 5% deposit saved, plus mortgage insurance*.
Properties that would qualify for this stamp duty exemption include newly built homes, including duplexes and apartments and those for sale off-the-plan. This could open up opportunities for first home buyers with limited savings to now buy in a suburb closer to family and friends, or where they already live. Examples of properties in my local area that would now qualify for a full stamp duty exemption include the following:
https://www.realestate.com.au/property-townhouse-nsw-girraween-133691826 (Contact Matt Barham 0414407816)
https://www.domain.com.au/9-86-88-railway-terrace-merrylands-nsw-2160-2013986010 (Contact Michael Sandow on 0449255381) Here’s an example of a local property that would now qualify for a reduction in stamp duty: http://www.riverbankrealestate.com.au/20476449
For vacant land, the threshold for the stamp duty exemption has increased to $400,000. While it isn’t high enough to make much of an impact on land for sale in the majority of the Sydney region, it will assist those who are already looking at the new estates in the outer western, south west and north western Sydney and beyond.
If this incentive scheme now brings forward your ability to get into the market and you’d like to get started on a loan pre-approval, please get in touch on 0414670151, firstname.lastname@example.org or my facebook page JBL Home Loans.
*I note that there are still some spots available for the First Home Loan Deposit Scheme, which gives an exemption for mortgage insurance as well. There are income thresholds and purchase price thresholds to qualify for that scheme.