Breaking Budget news: savings for first home buyers

The NSW Government has now delivered its budget and confirmed the  housing affordability package disclosed on 1 June designed to assist first home buyers enter the housing market.

In short, under this package, from 1 July 2017 the Government is increasing the grants and concessions available to first home buyers as follows:

  • abolish stamp duty on all homes up to $650K;
  • give stamp duty concessions on homes between $650K and $800K (to be calculated on a sliding scale);
  • a $10K grant for purchasers of new properties worth up to $600K;
  • the introduction of a First Home Builder Grant of $10K for people who build their first home on vacant land and the total value of the house and land does not exceed $750K; and
  • insurance duty on lenders’ mortgage insurance will be abolished.

On the flip side of this are the changes impacting foreign investors and investors buying off the plan.  Under the new regime:

  • foreign investors:
    • will pay higher surcharges when purchasing residential real estate:
      • the stamp duty surcharge will increase to 8%; and
      • the surcharge on land tax will rise to 2%.
  • investors buying off the plan properties will no longer have the 15 month deferral option to pay stamp duty; it must now be paid within 3 months of the date of the Contract.

Are you a first home owner and want to know more about these changes and how they may affect you?  Get in touch with the team at ClickLaw today!