From 1 August 2020, the New South Wales government will raise the thresholds on stamp duty exemptions. The exemptions available for eligible first home buyers of new builds will increase from the current threshold of $650,000 to $800,000 – with reductions phasing out at $1 million. The threshold on vacant land will increase from $300,000 to $400,000 – with reductions phasing out at $500,000.
These changes will effectively reduce or eliminate stamp duty costs for thousands of first home buyers.
Conveyancing.com.au has unrivalled experience in working with clients across NSW to get them prepared for buying their first home. This update opens the door for thousands more home buyers to enter the market, so work with us and we will apply and secure this exemption on your behalf, getting you one step closer to securing your dream home.
How do the changes benefit first home buyers?
It is estimated that more than 6,000 first home buyers across NSW will be eligible for the exemption, effectively saving them thousands of dollars on their first home purchase.
The existing First Home Owner Grant will remain available to those eligible as well, it offers $10,000 to people buying a new first home worth up to $600,000, or to people buying land and building a new first home worth up to $750,000 (in total).
Additionally, the new changes to stamp duty delivered by the NSW government will not impact the National HomeBuilder Grant, meaning eligible first home buyers could effectively “double dip”. The National HomeBuilder Grant provides eligible first home buyers a grant of $25,000 to build a new home or substantially renovate an existing home.
Finally, if you were to buy vacant land for less than $400,000 – from 1 August 2020, you can “triple dip” and pay zero stamp duty with $35,000 in grants!
With the current government incentives, there’s never been a better time to build your own home. Talk to Conveyancing.com.au about how to complete your purchase.
Are all home purchases eligible?
The changes to stamp duty exemptions only apply to first home buyers of new builds and vacant land.
The HomeBuilder Grant of $25,000 only applies to new homes or substantial renovations (costing $150,000 or over). Among other eligibility criteria, building contracts must be signed between 4 June 2020 and 31 December 2020, and construction must commence within three months of the contract date.
How can you get started?
If you’re a first-time home buyer and want expert guidance on how to apply for the stamp duty exemption and about the conveyancing process, Conveyancing.com.au is here to help.
We work with you to:
- Provide legal advice on the Contract for Sale
- Assess your stamp duty exemption eligibility
- Complete and lodge your application
- Use PEXA to handle any payments
- Collate and file necessary paperwork
- Review and provide advice on your Building Contract
- Partner with qualified and experienced site inspectors Rapid Building Inspections to assess the quality of your build
Despite these being the most challenging times we are likely to face, Conveyancing.com.au can help you achieve your dream of home ownership in 2020.
Contact our team today to get started.
This article is provided for general information purposes only. Its content is current at the date of publication. It is not legal advice and is not tailored to meet your individual needs. You should obtain specialist advice based on your specific circumstances before taking any action concerning the matters discussed in this article.