New stamp duty exemption to save NSW first home buyers more than $24,000
NSW first home buyers will benefit from new measures announced today, including stamp duty exemptions on new and existing homes worth up to $650,000.
The changes, announced by Premier Gladys Berejiklian, Treasurer Dominic Perrottet and Minister for Planning and Housing Anthony Roberts are to be introduced on July 1 and are expected to save first home buyers up to a total of $34,360.
“I want to ensure that owning a home is not out of reach for people in NSW,” Berejiklian said.
“These measures focus on supporting first home buyers with new and better targeted grants and concessions, turbocharging housing supply to put downward pressure on prices and delivering more infrastructure to support the faster construction of new homes.”
RELATED: Australian property bubble burst could be a reality after credit ratings slide
The major change affecting new home buyers in Australia is stamp duty exemption on homes up to $650,000 and stamp duty discounts up to $800,000. According to a government press release, this stands to save first homebuyers up to $24,740.
Borrowers struggling to save up a hefty deposit in the competitive property market will be glad to hear that stamp duty charged on lenders’ mortgage insurance will also be abolished. This change is expected to save buyers up to $2,900 on an $800,000 property.
Investors won’t be quite so happy with the new stamp duty arrangements, as concessions for investors purchasing off the plan were removed.
Other measures included in the package were an increase on the foreign investor surcharge from 4% to 8% on stamp duty and 0.75% to 2% on land tax; $3 billion in infrastructure funding for new housing; and fast tracked approvals for certain dwelling types like townhouses, manor homes and dual occupancy homes.
RELATED: Foreign investors or low housing supply: what’s driving high Sydney property prices?
The new measures appear to be an attempt to tackle the housing affordability and supply issues facing Australia at the moment, with Berejiklian saying she was “confident these measures will make a difference and allow us to meet the housing challenge for our growing State.”
Perrottet stressed the Government’s commitment to giving first home buyers “a leg up”, and to investing more into infrastructure.
“As a Government, we have always focused on supporting first home buyers and this package takes it to the next level,” he said.
“We know how challenging it can be to enter the property market and are pleased to be providing even more financial support for people wanting to make their first purchase.”
RELATED: First home buyer struggle a reflection of wealth inequality says RBA Governor
Roberts also commented on the measures’ move toward a streamlined, faster process for getting new housing developments off the ground, an important factor in increasing the supply of housing and alleviating affordability issues.
Looking to buy your first home? Make sure you stop by our home loan comparison table to check out some of the best mortgage offers in the market.