You now have a new option to help make your dream of owning a home a reality. The NSW government has introduced the First Home Buyer Choice program, which allows eligible first home buyers to choose between paying stamp duty or a smaller annual property tax.
This new program is designed to make home ownership in NSW more accessible by providing first home buyers with a choice that suits their financial situation. By opting for the annual property tax, eligible buyers can lower their upfront costs and potentially save up to two years of saving for a deposit. This can fast-track the path to owning a new home.
It’s important to note that existing stamp duty exemptions and concessions for first home buyers will continue to apply for eligible purchases of up to $800,000. The First Home Buyer Choice calculator is available to help you compare the estimated property tax and stamp duty costs.
What’s the difference between stamp duty and annual property tax?
Stamp duty is an upfront payment calculated as a percentage of the property’s purchase price or current market value. In contrast, annual property tax payments are based on the land value of the purchased property.
The property tax rates for 2022-2023 and 2023-2024 will be：
$400 plus 0.3% of land value for properties whose owners live in them
$1500 plus 1.1% of land value for investment properties.
To be eligible for the First Home Buyer Choice program,
you must be an individual over 18 years old who is an Australian citizen or permanent resident.
You or your spouse must not have previously owned or co-owned residential property in Australia, nor received a First Home Buyer Grant or duty concessions.
The property you are buying must be worth less than or equal to $1.5 million,
and you must move into the property within 12 months of purchase and live in it continuously for at least 6 months.
Finally, you must sign the contract of purchase on or after 11 November 2022.
In conclusion, the First Home Buyer Choice program offers eligible first home buyers in NSW an exciting new option to help them achieve their dream of owning a home. By providing flexibility in how buyers can pay for their home, this program can make home ownership more accessible to more people. If you’re a first home buyer in NSW, it’s definitely worth considering this new program and exploring your options.North Sydney Mortgage Broker Speed Lending offers expert guidance and support. Visit their landing page at Buying Home or Click here to calculate your borrowing capacity by yourself.
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