Property Law – Background
The NSW Government has announced the introduction of a comprehensive housing affordability package with measures designed to improve housing affordability for first home buyers.
These changes are part of many announced following changes to State taxes and grants as part of the 2017 State Budget
In essence, from 1 July 2017:
- all stamp duty for first home buyers on existing and new homes up to $650,000 is abolished, while stamp duty discounts on properties up to the value of $800,000 will apply
- stamp duty charged on lenders’ mortgage insurance is abolished (this is often required by banks to lend to first home buyers with limited deposits)
- a $10,000 First Home Owners Grant will be available to builders of new properties worth up to $750,000 and to purchasers of new properties worth up to $600,000.
(Note that the $5,000 New Home Grant Scheme which was available to all other buyers, including investors, will be closed)