First home buyers will save as much as $34,360 with a new package of measures designed to improve housing affordability across NSW. Under the new scheme, stamp duty on new homes up to $800,000 will be discounted.
This has been announced with changes to stamp duty for foreign investors who will now see a surcharge on stamp duty doubled from 4% to 8% and surcharge on land tax from 0.75% to 2%. Investors of any type will also no longer be able to delay their stamp duty for 12 months when paying for properties off the plan.
For first home buyers, this comprehensive package will:
The NSW Government released this below chart to show how much first time homebuyers will save under the new scheme.
There will also be a range of changes to first-home buyer grants. First home buyers building a new property will be entitled to a $10,000 grant on homes worth up to $750,000. First home buyers purchasing a new property worth up to $600,000 will be entitled to a $10,000 grant.
From the 1st of July, Insurance duty on lenders’ mortgage insurance will be abolished. Which is imposed at a rate of nine per cent of the premium. The removal of this duty will save all home buyers money if they need lenders’ mortgage insurance, not just first time buyers.
For example, on a home valued at $800,000, a buyer with a deposit of $50,000 who needs lenders’ mortgage insurance, could save about $2,900.
How can you take advantage of this scheme?
Along with the superannuation savings scheme, announced during the federal budget in May, first home buyers have been a big focus in property news in the last few weeks. If you are looking to purchase you first home, feel free to get in contact with Euphoria Loans for a free consultation to learn how you can take advantage of these schemes.