Blog Layout

Incentives For First Home Buyers, New South Wales

Equilaw • Mar 09, 2018

Incentives For First Home Buyers, New South Wales

First home buyers in New South Wales can expect big stamp duty savings through reforms which were delivered in the 2017 budget and commenced on 1 July 2017.

The new package is anticipated to assist many potential purchasers by improving housing affordability across the state.

Policies have also been introduced to target our growing population by boosting housing supplies in the right areas.

Would-be first home owners are encouraged to read on – these changes may bring the dream of owning your own home into clearer focus.

How can first home buyers benefit?

Entering the property market may now be more attainable for many first home buyers.

The First Home Buyers Assistance Scheme provides concessions and exemptions from stamp duty for eligible purchasers.

Stamp duty has been abolished on all homes (new and existing) with a purchase price of up to $650,000 for eligible first home buyers. This represents considerable duty savings – $24,740 on a $650,000 purchase.

Concessions are also available on homes priced between $650,000 and $800,000 for eligible buyers. The concessions will be calculated on a sliding scale and gradually decreased as the property value nears $800,000.

No duty is payable on vacant land to the value of $350,000 to be used to build a first home with concessions available for land valued between $350,000 and $450,000.

The First Home Owners Grant (New Homes) provides eligible first home buyers with a one-off grant of $10,000 if building a new home to the value of $750,000, or if purchasing a new property to the value of $600,000.

Am I eligible?

The stamp duty exemptions and grants apply to contracts entered on or after 1 July 2017.

A first home purchase means a property which you (or another eligible purchaser) will occupy for a continuous period of six months, within twelve months of settlement. Exemptions from this requirement apply for certain Australian Defence Force personnel.

To qualify, purchasers must be natural persons (not purchasing through a company or trust) and at least 18 years of age. The purchaser and purchaser’s spouse or de facto partner must not have previously received a concession or exemption under a First Home Buyers Scheme, or owned residential property in Australia unless the property was held solely as an executor or trustee.

At least one of the purchasers must be an Australian citizen or permanent resident at the time of the contract or transfer.

Applicants will need to meet Proof of Identity requirements and complete the relevant declaration.

Further savings and changes

Insurance duty on lenders’ mortgage insurance has been abolished for all borrowers, representing considerable savings, not just for first home buyers.

Mortgage insurance generally allows borrowers with less than 20% deposit to obtain a home loan. The insurance protects the lender if the borrower cannot repay the loan and the property needs to be sold. With the elimination of duty, buyers who are required to take out mortgage insurance for a home valued at $800,000 will be around $2,900 better off.

Speedier development approval processes and plans to build compact ‘smarter’ homes in appropriate medium-density areas are expected to improve housing supply and affordability, particularly for those first entering the market.

The State Government has also budgeted for significant funding boosts for infrastructure and capital works to support increased demands by additional housing supplies.

Why introduce the incentives?

The reforms aim to alleviate some of the competition between investors and first home buyers who are generally hard-pressed to buy property in a competitive market.

By increasing the incentives for first home buyers and hitting certain investors who buy residential property with higher taxes and duties, it is hoped that the playing field might end up a little more even.

For foreign investors, the surcharge on stamp duty has doubled from 4% to 8% and land tax has increased from 0.75% to 2%

Investors of off-the-plan properties, whether local or foreign, will now need to pay stamp duty within three months of exchanging contracts rather than deferring payment for fifteen months, as is generally the case for off-the-plan purchases.

Off-the-plan purchasers intending to use the property as their main residence will still be entitled to defer payment of stamp duty for fifteen months from exchange.

Whether you are a first home buyer or investor, it is important to understand the impact of stamp duty and taxes on a potential property purchase.

First home buyers are encouraged to do the calculations to see if now is the right time to get into the property market.

Your lawyer can assist in determining your eligibility for stamp duty concessions and grants and help you with the conveyancing process.

 

If you or someone you know wants more information or needs help or advice, please contact us on 02 6542 5566 or email michaelobrien@equilaw.com.au.

By Equilaw Solicitors Client 09 Dec, 2023
Going through a divorce is a stressful time and it is understandable that you may want to get through it as quickly as possible. Divorces can be complicated, and it is important that all the right procedural steps are taken. We recommend instructing a Solicitor to make it a smooth process. We understand that divorce comes with a number of questions and concerns. How long do I need to wait before I can file an application? How long does the process take? How much will it cost? Equilaw Solicitors can provide you with advice, support and answer all of your questions you could have. Give our friendly team a call on 02 6542 5566 . Liability limited by a scheme approved under Professional Standards Legislation. This newsletter is intended to provide general information. You should obtain professional advice before you undertake any course of action.
By Equilaw Solicitors Client 09 Dec, 2023
Mobile phone use is so integrated into our lives. We may not even realise how often we’re using them. It can be tempting to use our phones while driving to listen to music, scroll social media, text and talk to each other. However, touching a mobile phone while driving is illegal. Driving is a complex task. Anything that distracts you by taking your mind or eyes off the road, or your hands off the wheel, not only compromises your safety, but puts everyone else on the road at high risk. Being distracted increases your chances of having a crash. It slows down your reaction times and puts you in danger of failing to see hazards such as traffic lights, stop signs or other road users. Make sure you know the rules about mobile use while driving. For more information visit https://roadsafety.transport.nsw.gov.au/stayingsafe/mobilephones/know-the-rules.html The better option is to pull over in a safe place if you need to use your mobile phone. Otherwise, the next best thing is to use handsfree options, such as a cradle or Bluetooth linked to your car. If you have been caught using your phone or caught by a mobile phone detection camera and need legal help, contact our friendly team on 02 6542 5566 . Liability limited by a scheme approved under Professional Standards Legislation. This newsletter is intended to provide general information. You should obtain professional advice before you undertake any course of action.
By Equilaw Solicitors Client 09 Dec, 2023
For most of us, Christmas is a time to see family and friends, swap presents and stories and enjoy each other’s company. Christmas holidays can be a time of mixed emotions, particularly for families experiencing divorce or separation. The holidays can bring stress and conflict and be challenging for both parents and children as they adjust to a changing family dynamic. DO’s Communicate with the other parent for spending time with the children over the Christmas period and school holidays. Follow the terms of any Parenting Plan or Consent Order. Consider alternating Christmas Eve/Christmas Day so that each parent has an opportunity to have either Christmas Eve or Christmas Day with the children. Allow the children to video call or speak to the parent they are not spending time with to share in their excitement. Arrange a Family Dispute Resolution Conference (Mediation) with the other parent if you have not been able to reach any agreement or if you want to change the current parenting arrangements. Arrange to formalise any custody and access arrangements by way of a Parenting Plan or Parenting Order. Get Family Law legal advice if you are contemplating separating or have separated. Follow the terms of any Domestic Violence Protection Order. If you breach the terms of a Protection Order this is a criminal offence. Ask your children what they would like to do. Give them input and some control over the process. DON'Ts Don’t commit to events involving the children’s attendance such as holiday camps holidays away or overseas until discussing this with the other parent. Don’t take your children overseas without the written agreement of the other parent if you have a Parenting Order in place which doesn’t allow for such travel or if an Application for a Parenting Order has been filed in the Court. Don’t change your plans at the last minute. If you and your former partner have agreed on a plan, only change it if you both agree. Don’t run out of time. If you have a time limit approaching for property settlement or maintenance matters file court proceedings within the time limit. Don’t commit any acts of family or domestic violence including against your partner or children and do not expose your children to domestic violence. Don’t denigrate the other parent in the presence or hearing of the children. Don’t relocate the children’s residence without the consent in writing of the other parent or without a court order. Liability limited by a scheme approved under Professional Standards Legislation. This newsletter is intended to provide general information. You should obtain professional advice before you undertake any course of action.
More Posts
Share by: