First Home Buyers Back In The Game
Great news for first home buyers comes in the way of a comprehensive package announced by NSW Premier Gladys Berejiklian on Thursday 1st June. The package focuses on additional stamp duty relief for first home buyers, an increase in housing supply to improve affordability and reduced competition from investors.
Ms Berejiklian said the package, which will take effect from 1 July this year and is expected to cost around $1.2 billion, would bring “thousands more” new first home buyers into the market over the next four years. “We know how hard it is to save up for your first home, especially in greater Sydney and some regional areas.”
What the package means for first home buyers
• No stamp duty on both new and existing homes up to $650,000.
• Reduced stamp duty for new and existing homes between $650,000 and $800,000.
• Provide a $10,000 first home buyers grant for people building a new home up to $750,000 or purchasing a new home up to $600,000.
• Abolish the 9% stamp duty charged on lenders mortgage insurance for first home buyers with limited deposits
• Reduced competition by increasing foreign investor stamp duty and land taxes and no longer allowing investors to defer paying stamp duty on off the plan purchases.
|First home purchase price||Ordinary stamp duty||Savings for first home buyers of new dwelling*||Savings for first home buyers of existing dwelling*|
*Total of stamp duty exemptions plus first home owners grant plus savings from LMI duty abolition (Genworth LMI Premium Estimator based on a first home buyer with a $50,000 deposit).
The Premier said the NSW Government is committed to improving housing affordability by increasing housing supply “We will work with councils to provide the right conditions for developers to supply enough new housing in the right places”. The government will also spend $369 million over three years to “ensure contributions for new housing precincts are used for important infrastructure”. For more information on these changes or purchasing your first home, speak to an Assured Lending Mortgage Broker who can explain the process and guide you, step by step, through your first property purchase.