An estimated 6000 first home buyers in NSW have been given temporary relief in their bid to afford a new home after the NSW government announced temporary changes to the stamp duty threshold.
From tomorrow, eligible first home buyers could save thousands of dollars under the new stamp duty rules. No stamp duty will now apply for any new home purchase priced $800,000 or under, and a greatly reduced concession for properties valued up to $1 million. The stamp duty threshold on vacant land will rise to $400,000, phasing out at $500,000.
“Thousands of people will see their bank balances benefit from this change – it will help get more keys into more front doors of more new homes,” Ms Berejiklian said.
The stamp duty threshold changes will be in place for the next 12 months from August 1st, 2020 and apply to new builds and vacant land only. When used in conjunction with the $10,000 first homeowners grant and HomeBuilder grant, eligible buyers are set to make a significant saving on the purchase of their first home.
The changes have been welcomed by industry experts and first home buyers alike, bringing the scheme in better alignment with the current average value of properties within the state, especially Sydney. The stamp duty relief is also expected to drive more activity in the construction sector, bolstering the pipeline of future work as the economy struggles to recover from COVID-19 recession.
“It will also boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before.”
For more information on the first home buyer schemes available, head to NSW Revenue.