What the NSW Government’s housing affordability package means for you
The NSW Government has announced its mooted housing affordability measures. Here’s what they mean for you.
Under the new measures, from 1 July first time buyers will be exempt from stamp duty on properties costing up to $650,000 and will receive stamp duty discounts on properties costing up to $800,000. The concessions will be available for both new and existing properties. The NSW Government said the changes would save first home buyers $24,740.
The package also abolishes stamp duty on LMI, for an additional savings of around $2,900.
A rundown of all the changesThe NSW Government announced a range of measures to address housing affordability. Here’s a look at all the changes.
- Stamp duty exemption for properties valued up to $650,000
- Stamp duty discounts for properties valued up to $800,000
- Stamp duty concessions extended to established houses
- Stamp duty on lenders mortgage insurance (LMI) abolished
- Stamp duty concessions for off-the-plan apartments eliminated
- $5,000 grant for off-the-plan apartment purchases eliminated
- 12 month stamp duty deferral for investors eliminated
- First home owner grant for new homes capped at $600,000, down from $750,000
- Stamp duty surcharge for foreign investors rises from 4% to 8%
Video summary of the NSW housing affordability package
The package also takes aim at levelling the playing field between owner occupiers and investors. Stamp duty concessions for off-the-plan properties will be axed, as will the option for investors to defer paying stamp duty for 12 months.
Foreign investors will also be hit by new levies. The stamp duty surcharge for foreign investors will rise from 4% to 8%.
While the government’s package handed first time buyers a number of stamp duty concessions, it tightened eligibility for the $10,000 NSW first home owner grant. While the eligibility cap for first home buyers constructing a new home will remain at $750,000, the cap for those buying a new home will fall from $750,000 to $600,000.