Good news for those looking to break into the NSW property market. A temporary measure will be brought into effect on the 1st of August for first home buyers looking to purchase in NSW which could help save thousands of dollars, whilst at the same time foster activity in the construction industry amidst Covid-19.
Premier Gladys Berejiklian announced a suspension of stamp duty on new homes under $800,000 this week, anticipating more than 6000 first home buyers will benefit from the change and an increase of jobs in the building industry will result.
Under the new implementation, the threshold for stamp duty being charged on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before stopping at $1 million. The stamp duty threshold on vacant land will also rise from $350,000 to $400,000 and will phase out at $500,000.
These changes are set to last for 12 months from the 1st of August and will only apply to newly built homes or vacant land – not existing homes.
First home buyers can still benefit from the $10,000 first homeowner grant, which is available to those who purchase a new home less than $600,000, or those who buy land and build a brand new home for no more than $750,000 all up.
The maximum benefit a homeowner could save is $32,335 is purchasing a new home with the grant.
If you would like to chat about how these changes may affect you, please contact us on 02 4504 8004.