As the economic climate continues to change rapidly, it has become even tougher for first home buyers to purchase a property in NSW. Property prices have sky-rocketed and become largely unaffordable.
The NSW Government has introduced the First Home Buyer Choice scheme to attempt to lower the upfront costs of purchasing a home and hypothetically increase the rate of home ownership in NSW for First Home Buyers. Stamp duty rates have not changed for many years and considering most properties are now closer to $1million dollars than $300,000 it makes stamp duty a hefty sum for first-home buyers.
The First Home Buyer Choice has been announced to make changes to the property tax system to allow first-home buyers to choose between paying stamp duty or a smaller annual property tax. The New Scheme called First Home Buyer Choice commenced on the 16th of January, 2023
This means that for first-home buyers who are purchasing a property up to $1.5 million will have the choice of either paying stamp duty or an annual property tax. The aim is to incentivise a reduction in the up-front costs for first-home buyers in an effort to boost the rate of home ownership in NSW.
To be eligible:
you must be an individual
you must be over 18 years old
you, or at least one person you’re buying with, must be an Australian citizen or permanent resident
you or your spouse must not have previously:
owned or co-owned residential property in Australia
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
you must move into the property within 12 months of purchase and live in it continuously for at least 6 months
you must sign the contract of purchase on or after 11 November 2022
Further information is available on - https://www.service.nsw.gov.au/transaction/calculate-your-property-tax