First home buyers and the construction industry will be the big winners under a targeted boost, which will eliminate stamp duty on newly built homes below $800,000 and slash thousands of dollars for properties up to $1 million.
Under the changes the threshold above which stamp duty charged on new homes for first home buyers will increase from $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million.
The government forecasts more than 6,000 first home buyers will benefit from the changes, saving eligible first homebuyers thousands of dollars. In fact, first timers could save $17,995 on a $900,000 home purchase, according to numbers crunched by Craig Betalli, Senior Finance Specialist at OurBroker.
Under the changes the stamp duty threshold on vacant land will rise from $350,000 to $400,000 and will phase out at $500,000.
The change to the thresholds will only apply to newly built homes and vacant land, not to existing homes, and will last for a 12-month period, commencing on 1 August 2020. Other purchases will continue to benefit from existing schemes.
The government calculates the changes would save first home buyers stamp duty of up to $31,335 on a new $800,000 home.
The NSW Government will also continue to offer a $10,000 First Home Owner Grant, which is available to people buying a new first home worth no more than $600,000, or buying land and building a new first home worth no more than $750,000 in total.
This means the maximum amount of benefit a homeowner could be entitled to is $32,335 if purchasing a new home and accessing the grant.
If you are looking for finance for a first home, contact your Our Broker on 1800 913 677.