The NSW Government has opened the door to more first home buyers across the Tweed and throughout the state by abolishing stamp duty on their purchase of new and existing homes valued up to $650,000.
Previously, first-time purchasers could only claim the stamp duty exemption if they were buying or building a new house worth up to $550,000.
Effective July 1, this broadening of the exemption is important for prospective first home buyers in the Tweed region for two reasons; there’s not a significant amount of new home building occurring across the area, and most of the new stock that is hitting the market here isn’t within their budget.
So, those wanting to get the most out of their first-time buyer status can now look at a far wider choice of homes or apartments and save anywhere between $8,000 to almost $27,000 on stamp duty, which is about six months’ worth of savings.
In a further boost to their dream of home ownership, the government has also removed stamp duty on the lender’s mortgage insurance, which is a handy additional saving for those with smaller deposits.
As a result, we’re already seeing more interest from first-time buyers, and I’m expecting to see more activity coming in from Queensland, with Gold Coast buyers attracted not only by these stamp duty changes but the more affordable housing options just south of the border.
The news isn’t so good for foreign investors who are helping to pay for these initiatives by having their stamp duty obligation doubled to eight percent and paying an extra two percent in land tax.
I can’t see this having a dramatic effect on the Tweed market as we don’t have a significant presence of foreign investors; I think it’s aimed at cooling the temperature of the Sydney market more than anything.
‘Til next month…
Jason Abbott – Principal Coolangatta/Tweed