Monday 23 January 2023

SYDNEY FIRST HOME BUYER ALERT! Stamp Duty or Land Tax Choice – Take advantage while it lasts!

The option for First Home Buyers in NSW to choose between paying upfront stamp duty on their new home or pay a significantly less annual Land Tax is now up and running under the current Liberal Government. This scheme makes buying your first home much more feasible as it removes the huge up-front additional expense of Stamp Duty if paying annual land tax is the option you choose to take.

So long as the property you purchase is under or including $1.5 million and it is your first home, you get to decide which option works best for you. With stamp duty, you pay upfront the highest amount between a percentage of the purchase price of your property or its current market valuation. This mean a substantial out of pocket additional expense to what you will pay for your property.

On the other hand, if you choose to pay annual tax payments, the out of pocket is a radically reduced amount. You pay instalments of the land value of your property, which for the financial years of 2023 and 2024 will be calculated at $400 + 0.3% of the land value of your property if you live in it. Even if your first property is purchased as an investment, instead of significant stamp duty cost you will pay $1,500 per annum + 1.1% of the land value. For the 2024-25 financial year, property tax will be indexed annually, with year to year growth of land tax capped at 4%.

However, the land tax option could become obsolete if Labor is selected for NSW Government at the next election, as they plan to revert to Stamp Duty only. With the election only just around the corner on Saturday the 25th of March 2023, there is no time like the present to take advantage of this option. So long as you have purchased your property prior to its removal, you will not be forced back into the old Stamp Duty only system.

Cramer have a number of outstanding properties that will allow First Home Buyers to take advantage of this initiative while it is still available. Wicks Place by the Park is a new master planned project offering exceptionally designed apartments in the Inner West’s most iconic new development.

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