NSW has paved the way for first home buyers with new landmark legislation, reforming its approach to stamp duty.
The introduction of the First Home Buyer Choice scheme provides those buying for the first time with the option of paying stamp duty upfront when purchasing a home up to $1.5million, or paying a $400 annual fee, plus 0.3% of their property’s land value instead.
To give you an idea of what this could look like - a $700,000 apartment with a land value of $90,060 would incur a $671 payment in its first year of land tax - compared with $10,363 in upfront stamp duty costs.
The proof is in the numbers. These are huge savings for those taking their first property leap, significantly reducing the time it takes to save the money required to buy by eliminating a large chunk of the upfront cost.
The First Home Buyer Choice calculator will provide you with clear insight on exactly what the comparison looks like for you, and help you determine which option is best.
While the new scheme will not be fully operational until 16 January 2023, any eligible first home owners who purchase after 11 November 2022 will be able to seek a refund on their stamp duty before switching to the annual tax, if they choose to opt in.
For many first timers, this means they’ll be able to bring forward their property search.
Let’s not forget, the First Home Buyer Choice is not the only concession currently available in NSW.
Under the First Home Buyers Assistance Scheme, first home buyers can also apply for stamp duty exemptions on properties valued under $650,000, or for a stamp duty concession on properties valued $650,000 - $800,000.
There are a range of exemptions and concessions depending on whether you’re purchasing a new home, existing home, or land within these price brackets. For example, an existing home valued at less than $650,000 entitles you to a full exemption which means you pay no stamp duty at all.
A NSW stamp duty calculator like this one shows this can save you up to $24,585.
An existing home valued between $650,000 and $800,000 entitles you to a concessional rate, based on the value of your property - with a $700,000 home requiring you to pay a reduced rate of $10,445 in stamp duty, saving you $16,390.
See what you’re eligible for here.
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Concessions and incentives like these can help open the door to home ownership that many feel has been shut to them.
At Chidiac, we work closely with first home buyers to empower them on their real estate journey, and fast track their path to home ownership.
Let’s get talking about how we can make it happen today.
