First home buyers in NSW may be eligible for a stamp duty concession (i.e discounted) or a full exemption depending on the purchase price of the property.
First home buyers are generally eligible for a full stamp duty exemption if the purchase price of the property is below a certain threshold. In NSW, this threshold is $800,000 and a concessional stamp duty will be applicable if the purchase price of the property is between $650,000 to $800,000.
However, as of 11 November 2022, even if the purchase price of the property is above the $800,000 threshold (but below $1,500,000), a first home buyer may still be eligible to elect the “property tax” option whereby the first home buyer can opt-in to pay the stamp duty as an annual property tax instead of the full stamp duty amount.
These stamp duty concessions, exemptions and the new property tax scheme can significantly reduce the amount of stamp duty that a first home buyer will need to pay upfront as well as significantly improve their borrowing capacity from their lender, which will essentially provide the first home buyers more options in the current property market.
It is important for first home buyers to be aware of the stamp duty concessions and exemptions that are available to them, as they can save thousands of dollars on the cost of purchasing a first home.
Please feel free to contact us if you wish to discuss your options and how we can assist you.
For more information, please refer to the First Home Buyer Choice by Revenue NSW
The information contained in this web site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved.