NSW Stamp Duty Concessions for New & Off-The-Plan Property
by Hayden Brown, Mortgage Adviser
The NSW Government has last week announced a shake-up of their stamp duty concessions.
From January 2012, first home buyers will be entitled to fully subsidised stamp duty if they purchase a new or off-the-plan property, whilst established property will, from this date, incur stamp duty costs.
First home buyers who are purchasing established property will still be entitled to receive the $7,000 first home owner’s grant, however they will not be able to access the Governments stamp duty exemptions that were previously in place.
For individuals purchasing their first home under this new scheme, eligible purchasers may be entitled to up to $17,990 in stamp duty exemptions if the property they purchase is new or off-the-plan.
The new regulations for First Home Plus and First Home Plus One allows 100% stamp duty exemption for new or off-the-plan property costing up to $500,000 and partial stamp duty exemptions for property costing between $500,000 and $600,000. The Home Builders Bonus, which is a stamp duty exemption for individuals aged over 55 years who buy a new or off-the-plan property under $600,000, has also been extended to July 1st, 2012.
This announcement, delivered last week by NSW Treasurer Mike Baird in the 2011/12 budget, was met with mixed opinions, with some concerned about whether it will affect the number of first home buyers purchasing, and others welcoming the news who believe supporting NSW’s building industry is an important undertaking for the State’s economy.
Treasurer Baird said, “We believe it is necessary to make buying a new house relatively more attractive than buying an existing dwelling for first home buyers.”
Since the announcement, it has been widely commented amongst industry bodies as a significant policy that will contribute to stimulating new housing construction and supply in Sydney and NSW.
If you are a first home buyer, or would like more information on Sydney property the John Hopkins Group are currently recommending, please contact our office on 1300 726 082 and we can arrange for an appointment with a John Hopkins Property Investment Adviser or a John Hopkins Mortgage Adviser.
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