The NSW Government has announced new measures to improve housing affordability for first home buyers that will take effect from 1 July 2017.

Stamp Duty

• Will be abolished for new and existing homes valued up to $650,000.00.
• Discounted for properties valued between $650,000.00 and $800,000.00.
• No change to concessions on vacant land.
• Stamp duty concessions that allow for the 12-month deferral of stamp duty when purchasing off-the-plan property will be removed for investors.
• Buyers purchasing a home they plan to live in will still have access to the concession.

Insurance Duty

• Lender’s mortgage insurance (imposed at 9% of the premium) will be abolished.

Foreign Investor Surcharge

• on the purchase of residential property will be increased from

-       4% to 8% on stamp duty

-       0.75% to 2% on land tax

• Foreign developers will be exempt from these increased surcharges

Grants

• $10,000.00 First Home Owners Grant available to:

-       builders of new properties valued up to $750,000.00

-       purchasers of new properties valued up to $600,000.00

• $5,000.00 New Home Grant Scheme which was available to all other buyers (including investors) will now be closed.

 

 

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