Read more First Home Owner Scheme 2017
Buying a home for the first time can be scary to say the least. Entering a property market where prices have continuously risen and don’t seem to be falling, along with wages that are not changing to match the cost of living, can turn you off trying to buy your own home.
By the time you finally save for that deposit, prices have risen so much that your savings are no longer adequate. Even if you do have the deposit for a home the price range affordable to a new home buyer is often also the price range you find investors looking at. This creates a battle for affordable homes and unfortunately means that often it is the first home buyer who misses out.
Fortunately, the Government realizes the hardship of buying your first home and have newly released a package to aid in the affordability of buying your first home.
What is the First Home Buyers Package?
The First Home Buyers package was initiated on the 1st July 2017 and includes 6 new schemes:
- A first home buyer will not pay any stamp duty on a new or existing home up to $650,000. Stamp duty can be a hefty expense on top of the purchase price for a home and therefore can heavily affect your budget when looking to purchase. The abolishment of stamp duty for new home buyers up to this amount can mean savings of up to $24,740 on a $650,000 home.
2. A first home buyer will have relief on stamp duty for a new or existing home up to $800,000. If you are to purchase a property over $650,000 you still won’t suddenly have to add the full charge of stamp duty to the purchase price. Instead, you will still have a reduced stamp duty cost on homes up to $800,000. These savings range from approximately $2,800 – $18,750.
3. A first home buyer could receive a $10,000 grant if they build a new home up to $750,000 or purchase a new home up to $600,000 We all dream of having a brand-new home the exact way we want it to be, right? Well first home buyers are also encouraged to build their dream homes with this $10,000 grant. With prices the way they are, why not build what you want rather than living with compromises.
4. A first home buyer will not pay any insurance duty on lenders mortgage insurance. This policy is not just for first home buyers but for every home buyer. This will also save you a few thousand dollars, if you need lenders mortgage insurance.
5. Higher duties & land taxes for foreign investors The stamp duty surcharge for foreign investors has now doubled from 4% to 8%. The land taxes have also increased from 0.75% to 2%. Foreign developers are exempt from these increases.
6. Investors to no longer defer paying stamp duty on off-the-plan purchases. As I mentioned previously there is a strong battle in the housing market between first home buyers and investors. This abolishment of delayed stamp duty for investors is hoped to counter this battle and help the first home buyer. If you are buying off-the-plan property and intend to live in it you are still entitled to a 12-month delay in the payment of stamp duty.
If you are a first home buyer, it is time to be excited and believe that you can break in to the property market!
For more information visit: https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/