There’s a new state government within New South Wales – and it means another stamp duty plan.
1. July. The government that was dissolved by the Liberal administration’s First Home Buyer Choice is scheduled to be replaced by the Labor government’s Fresh Start plan, which includes lower price limits for homes and exempted stamp duty in full for first-time home buyers (FHBs) who purchase homes valued at $800,000 or less.
It is believed that the NSW stamp duty reforms leave potential FHBs with three options:
- Now buy and choose the First Home Buyer Choice stamp-duty option.
- Purchase now and select the First Home Buyer’s Choice’s annual tax on land option.
- You have until July 1st to purchase the Fresh Start.
If you’re looking to purchase your first house, figuring out which option is the best could seem like an impossible task. It’s important to think about the cost of your home as well as the time frame you’re planning to stay there, whether it’s a unit or a house unit, and much more. The good news is that Home Loan Experts have considered all possibilities and calculated the numbers for you. Here’s our guide for FHBs in NSW as the stamp duty reform is in the works within the state.
The overview
The process of weighing all the elements to make a final decision could be difficult, but it’s possible to establish some guidelines. In general:
- Price under $650K Purchase whenever you’d like
- $650K-$800K: You’ll not pay stamp duty after July 1st, So it’s best to put off paying until July 1st.
- $800K to 850K: It’s best to put off the purchase until July
- $850K-$950K: To buy a property that is priced at $850K, it’s best to buy it now and then select the NSW tax on the property. If you are purchasing a home, however, it might be wise to put off buying. The best choice is different, depending on how long you intend to stay in the house. If you decide to keep the property for a long time, it will cost you more property taxes than you will be paying in stamp duty, which is why it’s essential to do the math.
- $950K – $1.5M is Most likely more beneficial to purchase now and choose the property tax if you intend to keep your house for a long period (about ten years). It might be more helpful to wait until you are planning to hold the property for the rest of your life.
It’s a bit complicated. However, the savings could be significant! We suggest that you contact us at 1300 889 743 or complete our no-cost evaluation form online to talk with one of our Home Loan experts now!
How Long Does The Average Person Keep Their Property?
A home is usually occupied for around 11.3 years in the case of a house and 9.6 years for an apartment ( source). You should consider whether you’re purchasing your home for the long haul or if you’ll need to change or reduce the size of your home at some time.
The chart below shows how:
- Stamp duty when you purchase before July 1, 20,23, and you pay duty in advance.
- Purchase before July 1st,2023, and opt for an annual tax plan for your property.
- We’re waiting until July 1, 20,23, which is the date of this new NSW Labor government’s proposed scheme to purchase.
