June 02, 2017
Three months after the Victorian government took steps to influence the housing market the NSW Government makes home ownership more accessible for First Home Buyers.
Effective July 1, the NSW government has revealed a plan that will abolish stamp duty on new and existing homes up to $650,000 and provide stamp duty relief for homes up to $800,000.
Insurance duty on LMI will also be abolished, while the government will provide a $10,000 grant for builders of new homes up to $750,000 and purchases of new homes up to $600,000.
In addition the surcharge on stamp duty for foreign buyers will double to 8 per cent and the surcharge on land tax will increase from 0.75 per cent to 2 per cent. However, foreign developers will be exempt from the increased surcharges.
Investors currently account for around 48 per cent of buyers in the Sydney market so the government is taking measures to help first home buyers gain an advantage.
In a statement yesterday it was revealed that NSW government will abolish the 12-month deferral of duty for residential off-the-plan purchases by investors.
“Buyers who are purchasing a home they plan to live in off-the-plan (regardless of whether they are first home buyers or not) will still be entitled to a 12-month delay in the payment of stamp duty, deferring payment from three to 15 months after settlement. But this concession will be closed to investors,” a spokesperson said.
In addition, the NSW government has outlined plans to boost housing supply and infrastructure across the greater Sydney area.
There's never been a better time for you to contact your Mortgage Choice broker. Peter and Emma are paid the same regardless of the lender you choose from our panel of over 20 major banks and building societies. Let them compare and contrast the entire range products on the market for you. Don't limit yourself to the information your bank is prepared to give you.
Call us on 9521 1611 for more information.