Earlier this year a new housing affordability package was announced, which aims to support first homebuyers, as of July 1st 2017. It’s no secret that the rising costs of real estate have kept some Australians, both young and old, from entering the property market.
If you are a first homebuyer, you are probably wondering what the exemptions on offer are, and how can they help you get on the property ladder? The following applies to you, as a first home buyer…
- NO more stamp duty! Stamp duty on both new and existing properties (up to $650,000 purchase price) has been abolished.
- Where stamp duty is applicable, it has been reduced! All new and existing home purchases between $650,000 and $800,000 are subject to reduced stamp duty.
- Additional funding when building! A $10,000 grant is available on the building of a new home worth up to $750,000 (this includes building a home on vacant land).
- Additional funding when buying brand new! A $10,000 grant is available on the purchase of a brand new home worth up to $600,000 (purchase price).
- NO more insurance fees! Insurance duty fees on mortgage insurance has been abolished.
The Premier recently commented that, “I want to ensure that owning a home is not out of reach for people in NSW…”
Contracts dated on or before June 30th, 2017 will be subject to all grants and provisions that are currently available, with the new rules coming in on July 1st.
“The NSW government has made some real steps towards addressing the affordability of housing in NSW for first time home buyers. These changes should create more opportunities for market entry,” said Tracy at Mortgage Masters in Maitland.
What kind of savings will all these concessions provide for first home buyers? Tracy says, “On a purchase of say, $400,000 this represents a savings of $14,460, or $14,460 less you will have to save in order to apply for a loan approval.”
Tracy has been involved with first home buyers since the introduction of grants back in 2000. Residential home loans in general are one area of specialty at Mortgage Masters, and Tracy says, “We can answer many questions that first home buyers have when deciding how to finance their dream home.”
If you are looking to enter the market and need some financial advice around becoming a first home buyer, give Tracy a call at Mortgage Masters today and start the process of building/buying your own home now!