The NSW Government has recently announced new measures to assist with housing affordability for First Home Buyers.
The initiatives for First Home Buyers come with the following announcements:
* Abolish stamp duty on all homes up to $650,000.
* Provided stamp duty relief for homes up to $800,000
* Provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000
* Abolish insurance stamp duty on lenders’ mortgage insurance
* Ensure foreign investors pay higher duties and land taxes
* No longer allow investors to defer paying stamp duty on off-the-plan purchases
The above initiatives commence from 1 July 2017.
Below are some First Home Buyer examples and the potential savings:
Renee and Peter are purchasing a brand-new home in a new housing development for $600,000 and are contributing $50,000 of their own money. Renee and Peter will save up to $34,361. These savings are made up of $22,490 in purchase stamp duty; $10,000 First Home Owner Grant and $1,871 in mortgage insurance stamp duty.
Chole and Josh are purchasing an existing home for $600,000 and have $50,000 of their own money saved. Chole and Josh will save up to $22,490 in purchase stamp duty and $1,871 in mortgage insurance stamp duty.
Emily and Shannon are purchasing an existing property for $750,000 and are also contributing $85,000 of their own money. Their total savings will be up to $10,950, this is made up of reduced purchase stamp duty and mortgage insurance stamp duty. If Renee and Shannon were purchasing a brand-new property at the same price the savings would be the same.
(The total amount of government fees and charges is for illustrative purposes only and do not take into account the individuals needs and requirements. Stamp duty concessions or surcharges may be available depending on your circumstances.)
For more examples of savings to First Home Buyers please refer to the following link:
https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/
Whilst this is a fabulous initiative and provides maximum benefits for First Home Buyers who purchasing a property up to a price range of $600,000; the benefits taper off completely once the purchase price of the home exceeds $800,000. For the bulk of First Home Buyers looking to purchase in Sydney these initiatives won’t be as beneficial.
First Home Buyers in regional areas of NSW would benefit the most from the initiatives announced by the NSW Government.
If you would like to know more detailed information about the NSW Government initiatives please contact us here at Wyze Finance and we will be very happy assist.
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.