CAN YOU TAKE ADVANTAGE OF NEW FIRST HOME BUYER INCENTIVES IN NSW?
As part of the 2017 State Budget, the NSW Government has announced more than $1 billion of Stamp Duty concessions and measures to help improve housing affordability for first home-buyers.
So what are the changes?
STAMP DUTY CONCESSIONS NOW APPLY TO EXISTING PROPERTIES TOO
Previously, stamp duty exemptions only applied to first home buyers of new property worth up to $550,000.
Now, first home buyers purchasing both new and existing properties worth up to $650,000 do not need to pay stamp duty.
First home buyers who purchase properties between $650,000 and $800,000 will have their stamp duty discounted.
A NEW FIRST HOME BUYERS GRANT
There is also now a $10,000 grant in place for first home buyers of new homes worth up to $600,000.
The grant is also available for first home buyers who are building their home, as long as the value of the land and building does not exceed $750,000.
NO MORE STAMP DUTY ON LMI
In addition to these changes, the Government has also abolished stamp duty for lenders mortgage insurance (LMI). This equates to a saving of $2,250 for those using a 5% deposit on a $650,000 property purchase (based on a $25,000 premium).
HOW CAN YOU MAKE THE MOST FROM THESE CHANGES?
First home buyers see entry prices as the biggest hurdle to home ownership. The government concessions and incentives can shave $24,700 off the start-up costs associated with buying a home.
If you are yet to crack the market thanks to housing affordability, these changes may enable you to put more money into a deposit.
IS THIS JUST FOR THOSE BUYING HOMES?
The stamp duty exemption and concessions apply for those purchasing their first home. In other words, you need to buy a principle place of residence and satisfy the Office of State Revenue’s eligibility criteria to take advantage of the changes.
This means you need to legitimately live on the premises for a continuous 6 months commencing within 12 months of settlement.
HOW WILL THESE CHANGES AFFECT PROPERTY PRICES?
In a recent article by CoreLogic, Tim Lawless says first home buyer activity is likely to surge following the Government’s change to stamp duty concessions.
“The long term outcome may be self-defeating due to higher demand pushing up prices.”
In other words, first home-buyers flock to more affordable suburbs in an attempt to crack the market and save on stamp duty. As a result this increased buyer demand will heighten competition and drive up prices once again.
NOW IS THE TIME TO TAKE ACTION
In order to reap the benefits of these changes, it will be necessary for first home buyers to act now.
Waiting too long may mean missing out on the exemption.
It may also mean missing out on affordable properties in Sydney.
According to CoreLogic, just over 25% of dwellings sold in the Sydney Metro area over the past 12 months went for $650,000 or less.
In other words, now that the cost of stamp duty has been removed or reduced for many buyers, that 25% of lower priced properties are likely to sell like hotcakes.
As increased buyer demand raises the bar on affordable housing, those who are ready to pounce will be the likely winners, while those who stay on the side-lines may miss out altogether.
SOME FIRST HOME BUYERS HAVE ALREADY JUMPED ON THIS OPPORTUNITY
23 year old Ozkan has already seized this opportunity to get into home ownership.
By thinking outside the box, and making the most of the new government incentives, he is getting into a brand new 4 bedroom home for as little as $42,000 up front.
Find out how exactly what he is doing and how you too can get on-board with the same opportunity here.
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