Stamp Duty – Buying the first home (property)
The First Home Benefits Scheme will continue to grant exemptions of stamp duty for purchases up to $650,000.00 and concessions for purchases between $650,000 and $800,000 of existing and new property.
From 16 January 2023, first-home buyers purchasing a property up to $1.5 million, will have the choice of either paying stamp duty or an annual property tax. Paying an annual property tax of $400.00 plus 0.3% of the current land value of the property.
Land Tax
From the 2023 land tax year, the surcharge land tax payable on residential land owned by foreign persons is increased from 2% to 4% of the taxable value of the residential land owned at midnight on 31 December 2022.
The discount for early payment of land tax is reduced from 1.5 percent to 0.5 percent if paid within 30 days after service of the notice of assessment.
Shared equity scheme
The NSW Government will help you to buy the property in exchange for an equivalent ownership share of the property. The NSW Government equity contribution is up to 40 percent of the purchase price of a new dwelling and up to 30 percent of the purchase price of an existing dwelling.
The purchaser must:
- have a minimum deposit of 2 percent of the purchase price, with no lenders mortgage insurance required;
- be able to service the mortgage with a participating lender with the Government equity contribution.
No repayments are required on the equity contribution and no rent or interest will be charged while a participant remains eligible for the scheme. Participants can make voluntary payments to progress to full ownership of their property.
This scheme is to assist a single parent of a child or children under 18 years of age; or a single person 50 years of age or above; or first home buyers key workers who are nurses, teachers or police. The participant must be buying a home with a property price of less than $950,000.00 in Sydney and major regional centers or less than $600,000.00 in other regional areas.
Speak to CFS Legal dedicated lawyers in confidence for property advice. Email: info@cfslegal.com.au