In an effort to address housing affordability in New South Wales, the State government has today announced a number of changes to help first home buyers.
First Home Buyers
As part of the proposed changes, stamp duty will be scrapped on all homes up to $650,000, saving buyers up to $24,740.
The changes, effective 1st July 2017, also include a $10,000 grant for builders of new homes up to $600,000.
The government has also announced the insurance duty on lender's mortgage insurance will be abolished.
In addition to the proposed changes for first home buyers, the government has proposed changes to investment lending policy.
Under the proposed changes, investors will no longer be able to delay paying off stamp duty on off-the-plan properties. Previously, investors were able to defer payment on stamp duty for a period of up to 12 months.
As part of the announcement, the state government has put forward some changes to foreign investment lending. In a bid to slow interest from foreign investors in the market, the government announced higher surcharges for foreign investors including a doubling in the stamp duty paid on new purchases.
Importantly however, foreign developers will be exempt from the increased surcharges.
The government has also committed today to unlocking more land to address the supply constraints. More land will be released and rezoned while the government makes commitments towards infrastructure.
The government hopes to achieve this through faster approvals and incentives to local councils who are encouraged to update their Local Environment Plans (LEPs).
Finally, the government also announced a $3 billion boost to infrastructure funding, which will contribute to the delivery of housing. Councils who choose to borrow funds will be supported in order to bring forward capital works in an effort to establish community centres and public open spaces.
If you're a first home buyer or an investor and you want to hear more about the state government's proposed changes and how they may impact you and your property ambitions, give your local broker a call today.