Update for First Home Buyers

Posted by Gillian Leahy on 22 June 2017

First home buyers looking to buy a house in Sydney are finding it harder and harder to find affordable housing. To help combat this, the New South Wales Government have recently announced some changes to stamp duty for first home buyers.

The aim of these new changes is to help make housing more affordable for first home buyers in the Sydney housing market.

The new NSW Government changes are:

  • No stamp duty for first home buyers who purchase a home up to the value of $650,000.00. This includes new and existing homes.
  • Discounts on stamp duty for first home buyers who purchase a home between the value of $650,000.00 and $800,000.00. This also includes new and existing homes.
  • There will also be a $10,000.00 grant for first home builders of new homes up to $750,000.00 and first home purchasers of new homes up to $600,000.00.

In addition to these changes, the NSW Government has proposed to:

  • Abolish insurance duty on lenders’ mortgage insurance.
  • Charge foreign investors higher duties and land taxes.
  • No longer allow investors to defer paying stamp duty on off-the-plan purchases.

The current concessions a first home buyer can receive on vacant land will remain unchanged. The new changes are due to take effect from 1 July 2017.

It is understood that Contracts dated prior to the commencement of these reforms will continue to be eligible for the same grants, concessions, and conditions for which they would have been eligible had these changes not occurred. This means the previous grants and concessions will still apply to those Contracts that are prior to 1 July 2017.

To find out more about the new or current first home buyer rules and regulations, contact Selvaggio Lawyers today. Our Property Law team are always on hand to provide assistance when you need it. Contact us today to arrange a consultation.