With housing affordability being a hot topic, the NSW & Federal Government has implemented measures to assist first home buyers in achieving the “Great Australian Dream”.
A summary of the measures implemented to assist first home buyers are:
The First Home Super Saver Scheme was introduced on 1 July, 2017, to assist first home buyers to save for a deposit. The scheme assists by:
- Individuals can make voluntary contributions to their super account up to $15,000 per year, up to a maximum of $30,000 in total over time (and subject to existing annual super caps);
- The voluntary contributions can be withdrawn together with any earnings on those contributions any time after 1 July, 2018 to pay a deposit on the purchaser of the individuals first home;
- The voluntary contributions and withdrawals are taxed at a much lower rate than traditional savings, so that the individual can save more money through using this scheme.
The NSW Government as at 1 July, 2017 changed some of the assistance to first home owners from just being on new dwellings to being on both new and existing dwellings. The measures in place are now:
- There will be no stamp duty for first home buyers, if the property is to be their principal place of residence and it is purchased at a price of $650,000 or less;
- Stamp duty will be payable on a concessional basis between $650,000 and $800,000;
- Continuation of the first home owners grant of $10,000 for purchase of new homes only up to a purchase price of $600,000;
- First home owners grant of $10,000 for first home buyers building a new principal place of residence under a building contract or as an owner builder up to a value of $750,000.
The Property and Conveyancing Team at Gibson Howlin Lawyers is able to assist First Home Buyers as well as buyers and sellers when dealing with property in NSW.