The NSW Government recently announced a number of measures in an attempt to improve housing affordability for first home buyers across the state. At present, first home buyers receive a stamp duty exemption on new homes valued up to $550,000 and vacant land up to $350,000 and concessions for new properties valued between $550,000 and $650,000 and vacant land costing between $350,000 and $450,000.
The Government’s changes commencing on 1 July 2017 include:
- abolishing all stamp duty for first home buyers on existing and new properties valued up to $650,000;
- stamp duty concessions for first home buyers of properties valued up to $800,000;
- abolishing stamp duty on lenders’ mortgage insurance (which banks often require when a purchaser has a limited deposit);
- increasing the foreign investor surcharges on stamp duty from 4% to 8% and on land tax to 0.75% to 2%; and
- removing stamp duty concessions for investors purchasing off-the-plan properties.
To expedite the delivery of new housing the Government has also announced changes to Local Councils’ planning processes and committed $3 billion to infrastructure.
Please contact us if you are buying or developing properties in NSW and would like further information on how the above affects you or your business.