Recent changes to the NSW Stamp Duty look good for property investors…
With the recent NSW budget, the NSW Government has put in measures in place to address the increasing lack of housing affordability by abolishing the NSW stamp duty for people purchasing a home ‘off the plan’ and under $600,000. An ‘off the plan’ purchase in simple terms means buying the home before construction is completed.
A 25 per cent NSW stamp duty cut will also apply to those buying a home worth up to $600,000 which is under construction or just completed.
Under the two-year plan, beginning July 1 this year, those purchasing properties off-the-plan will pay no stamp duty, a saving worth up to $22,490 each, Mr Roozendaal, the NSW Treasurer said.
The over-65s will also benefit from the announced changes. They will get a stamp duty exemption if they downsize and buy a newly constructed home to use as their primary residence.
“This will apply to people over 65 who sell their primary place of residence and move to a newly-constructed home – whether it is house or an apartment,” Mr Roozendaal said.
Other announcements in the budget include a cap on council charges for development at $20,000 which is a much welcomed change. Previously development charges per block could be as high as $60,000 in NSW and there was very little consistency between councils and regions. These savings will hopefully be passed onto customers in the form of cheaper properties and land.
Mr Roozendaal said the measures were aimed at boosting housing supply and housing construction rates across the state and are a key driver of economic growth.
Property Council of Australia NSW Acting Executive Director Glenn Byres believes the slashing of the NSW stamp duty for new houses will stimulate much needed new housing construction and improve housing affordability in the state.
“We need new solutions if we are going to close the supply gap and tilt the affordability equation back in favour of home buyers,” NSW Acting Executive Director Glenn Byres said.
“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.
“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.
The Housing Industry of Australia (HIH) says that new housing development has a knock on effect throughout the construction and related industry. The HIH says that for every $1 million of construction output, tens of thousands of dollars are spent on primary materials, transport, and property services.
The end of financial year is a great time to re-evaluate current investments and to invest money that you might have received from your tax return, consider downsizing or trading up. Professional buyers agents can help you search for a new development or an existing property in your desired search location and within budget. Contact Amanda Segers, if you would like to take advantage of the recent NSW stamp duty reductions.
Amanda On My Side offers exceptional buyers agent services throughout Sydney and across Australia. Engage a professional real estate buyers agent to help you find the best property at the right price. Buyers agents, also known as property finders or a buyers advocate, can help find, research and bid on your next home or investment property. Need a buyers Agent Sydney – then you need Amanda on your Side.
