NSW Government Housing Affordability Package designed to increase housing supply, improve community infrastructure and assist First Home Buyers entering the marketplace will take effect on 1st July 2017.
Stepping onto the property ladder is a fundamental part of the Australian dream and a monumental financial leap. First Home Buyers often face tough competition from investors so the changes from the 1st July will be a welcome relief to new home owners and could just be the lift needed to gain entry to the real estate market.
First home buyers
- Abolish stamp duty on homes up to $650,000
- Reduced stamp duty for homes up to $800,000
- Abolish insurance duty on Lenders’ Mortgage Insurance (LMI)*
- Grant $10,000 to first home owners building a new property worth up to $750,000
- Grant $10,000 to first home buyers purchasing a new property worth up to $600,000
- Higher duties and land tax to foreign investors – Stamp duty doubled from 4% to 8% and land tax rise from 0.75% to 2%
- Investors no longer able to defer paying stamp duty on off-the-plan purchases
*LMI is currently calculated at 9% of the premium. The removal of this duty from 1st July 2017 will benefit all home buyers (first home buyers or not) if they were preparing to pay Lenders’ Mortgage Insurance.
|Savings for First Home Buyers (source office of state revenue)|
|First home purchase price||Ordinary stamp duty||Savings for first home buyers
of new dwellings*
|Savings for first home buyers
of existing dwellings*
|$800,000||$31,490||$ 2,896||$ 2,896||$95,490|
*Total of stamp duty exemptions plus first home owners grant plus savings from LMI duty abolition (Genworth LMI Premium Estimator based on a first home buyer with a $50,000 deposit). **Does not include additional land tax surcharge.