Changes have been announced by the NSW Government in an effort to improve housing affordability which include the following positive changes for first home buyers:
- The stamp duty on new and existing homes up to $650,000 will be abolished. Currently the limits is $550,000. The changes will see the concession applying to existing homes
- There will be stamp duty discounts applied for homes between $650,000 and $800,000;
- The 9% stamp duty charge on lender mortgage insurance (LMI) will be abolished;
- there may be some tightening in the eligibility criteria placed on the existing $10,000 first home owner Grant;
- there will be a $10,000 grant for builders of new homes up to $750,000 and the eligibility For those buying a new home drops from 750,000 to 600,000.
- The 12 month deferral of stamp duty for residential off the plan purchases by investors will be abolished which may allow first home buyers to compete with investors.
- There is no change to the cap for vacant land therefore where land is purchased costing $350,000.00 or under, no duty is payable with concessions up to $450,000.00.
Changes affecting foreign investors will include the following:
- The stamp duty will increase from 4% to 8%;
- The annual land tax surcharge on foreign buyers will increase from 0.75% to 2%
these changes are expected to come into play from 1 July 2017.