The NSW Government has announced a package of measures to improve housing affordability. The new savings scheme for home buyers are as follows:
- Stamp duty will be abolished for first home buyers on existing and new homes worth up to $650,000. For properties valued between $650,000 and $800,000, stamp duty discounts will be available for first home buyers.
- Insurance duty on lenders’ mortgage insurance (imposed at 9% of the premium) will be stopped. This insurance is often required by banks to lend to home buyers with limited deposits
- Stamp duty concessions that allow for the 12-month deferral of stamp duty when purchasing residential off-the-plan property will be removed for investors, but buyers purchasing a home they plan to live in, will still have access to this concession, and
- The foreign investor surcharge on the purchase of residential property will be increased from 4% to 8% on stamp duty and 0.75% to 2% on land tax. Foreign developers will be exempt from the increased surcharges.
These measures will take effect from 1 July 2017.
In addition, a $10,000 First Home Owners Grant will be available to builders of new properties worth up to $750,000 and to purchasers of new properties worth up to $600,000. Furthermore, the $5,000 New Home Grant Scheme which was available to all other buyers, including investors, will be closed.
Other measures included in the package relate to increasing housing supply and accelerating the delivery of infrastructure.
Contact Tyler & Co today on 02 9966 1799 for a free 30min consultation on how you can take advantage of the NSW stamp duty scheme.