Buying a new home just got cheaper in NSW

Font size :
In a bid to increase the supply of new homes, stamp duty charges have been cut in this year’s New South Wales state budget, handed down by Treasurer Eric Roozendaal MLC on Tuesday.
According to the proposed budget, buyers will now be exempt from paying stamp duty on off the plan purchases under $600,000 for two years. Buyers over 65 purchasing new homes are also exempt from the duty when buying new homes up to the value of $600,000.
Developers are also set to benefit from the budget, with homes currently under construction or newly completed with a purchase price under $600,000 now attracting a 25% reduction in applicable stamp duty.
“The Government has done the right thing in recognising that cuts to stamp duty targeted at new homes will drive supply and lend a hand to homebuyers,” said NSW Acting Executive Director of the Property Council of Australia, Glenn Byres.
According to the council, the cuts are a direct response to a proposal provided to the state government during the pre-budget submission. While pleased with the inclusions, the Council are disappointed that the government has decided to proceed with its ‘ad valorem’ tax on land and property transfers.
“The new ad valorem tax – effectively a secondary stamp duty – remains a black mark on the Budget and should be ditched,” said Byres.“It won’t only reach residential projects – but will significantly add to the cost of bringing industrial parks, retail centres and commercial office space to life.“
However, the government confirmed that the new ad valorem tax will be included, costing homebuyers and additional $190 for houses with a value less than $500,000. For purchases over $500,000 an additional 0.2% tax will be charged, with properties over $1 million facing an additional 0.25% charge.
Overall, the budget addresses Sydney’s pressing need for an increase in housing, says Byres. “Sydney faces an enormous task in providing 26,000 new homes a year to accommodate the inevitable growth in population. Stamp duty cuts targeted at new homes elevate the prospects of bringing forward supply that fits the demands of the Metropolitan Strategy.”
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Quirks in the QLD property market investors should be aware of Quirks in the QLD property market investors should be aware of

Interstate buyers should familiarise themselves with these quirks to avoid investment blunders Read more

CBA unveils new repayment simulator CBA unveils new repayment simulator The simulator will show customers the differences between different types of repayments ... Read more

How to tell when a housing market is cooling How to tell when a housing market is cooling You need to check clearance rates, listings, and the price gap, among other factors ... Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 27, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords