NSW Government keeping the great Australian dream alive
The NSW Government has recently announced changes to stamp duty thresholds in an aim to boost housing construction across NSW amidst the Coronavirus pandemic that is currently sweeping the nation.
It is estimated that almost 6000 NSW residents will be assisted from the Government’s new changes that now allows for first time homebuyers to receive benefits for property purchases worth up to $1million – up from the previous $650,000 limit.
These changes will take effect from 1 August 2020 for 12 months and will work in conjunction with the current $10,000 First Home Owner Grant, available to people buying a new first home worth no more than $600,000, or buying land and building a new first home worth no more than $750,000 in total.
What does this mean for you?
· Stamp duty will be waived for homes up to $800,000 and discounted up to $1 million
· Changes to the thresholds will only apply to newly built homes and vacant land, not to existing homes
· The maximum benefit a homeowner could be entitled to is $32,335 if purchasing a new home and accessing the grant
· Changes will take affect from 1 August 2020 to 1 August 2021
These changes come in the wake of HomeBuilder, the Federal Government’s economic response to the Coronavirus that provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. To be eligible, owner-occupiers must meet stringent criteria and contracts must be signed between 4 June 2020 and 31 December 2020, with construction to commence within three months of the contract date.
The First Home Loan Deposit Scheme has also been introduced to help first home buyers to purchase a home sooner, allowing buyers to make a purchase of a home with as little as five per cent deposit without the need to pay for mortgage lenders insurance.
Aston Financial Services has over 20 years' experience in the finance industry and is one of the leading mortgage brokers in Eastern NSW. If you’re in the market for your first home and need some expert advice to maximise your savings, then give us a call today for a free consultation.
