If you’ve been saving your pennies but are reluctant to dive into the property market at the current time, you’re certainly not alone.
However, with the NSW government now offering stamp duty relief for first home buyers, the changes could mean a discount of up to $32,000 for eligible property seekers entering the market for the first time.
Effective for 12 months from 1 August 2020, the new stamp duty exemptions include lifting tax on newly built homes under $800,000 – a step up from the previous threshold of $650,000 – as well as concessions on properties between $800,000 to $1 million.
Additionally, stamp duty has been lifted for vacant land, with concessions phasing out at $500,000.
According to the NSW government, it’s a $78 million dollar relief measure that should see over 6000 first home buyers rush to the market. And while the new exemptions will come as little to no news for first home buyers looking at a lower price point, the changes are welcomed by the construction sector and various industries involved in residential development.
A recent article by CoreLogic reported that raising the threshold will ultimately provide first home buyers with more options, as they will have more diversity in housing stock to access with stamp duty discounts – particularly across Sydney where property values are higher than in most capital cities.
So, if you’re considering a slice of the pie, what could $800,000 get you in a new property in South West Sydney?
There’s a few key suburbs to keep an eye on, says Client Relationship Manager at Prudential Real Estate Campbelltown, Wayne Browne.
“If you’re wanting to take advantage of the concessions on new house and land packages, areas like Tahmoor and Oran Park are rapidly growing and have a lot to offer new families.
“There are opportune pockets, you just need to know where to look.”
Or, if you’re considering vacant land around $500,000 to build your dream home, how about 536 sqm of sought-after Gregory Hills – registered and ready to build on right now, with further potential as a duplex site STCA (click here to find out more about Prudential’s current land offerings).
Alternatively, if you don’t qualify for the new stamp duty concessions, you may qualify for the Federal Government’s First Home Loan Deposit Scheme (FHLDS), which is helping hundreds of people to get into the market and purchase a home sooner.
Introduced in January this year, the scheme enables eligible buyers to purchase a property with as little as 5% deposit without the need to pay lender’s mortgage insurance (LMI). It’s a significant jump from the previous 20% deposit minimum, and has the government acting as guarantor for the difference.
Notably, the FHLDS can be used in conjunction with stamp duty exemptions, the first home buyer grant and other concessions.
In the end, the government’s new schemes will not only be a positive boost to the economy amid Covid-19, but are an attractive prospect for buyers who want to step into the market with the intention of getting ahead and saving.
After more information about buying or selling?
Get in touch with your local Prudential Real Estate office below:
Prudential Real Estate Campbelltown | (02) 4628 0033 | firstname.lastname@example.org
Prudential Real Estate Liverpool | (02) 9822 5999 | email@example.com
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | firstname.lastname@example.org
Prudential Real Estate Narellan | (02) 4624 4400 | email@example.com