From August 1, the NSW Government will temporarily eliminate stamp duty on all new off-the-plan homes priced below $800,000. The changes will mean the threshold above which stamp duty is charged on new homes will be bumped up from $650,000 to $800,000
Please see below for the full transcript of this video
Good morning and hello welcome to a news update from Inspire Realty. My name is Colin Lee. Firstly, I just wanted to have a special shout out to all my Victorian friends who are going through some very challenging times. I’m certainly thinking and praying for you. And I certainly hope that things will get better from here on in. Today I wanted to make a special, I guess shout out to a lot of first homebuyers who might have had a lot of conversations with throughout the last week. Just when you things were just when you think that things could not get better, things are getting better. And just a couple of days ago, the New South Wales government has announced that they would stamp out stamp duty for first homebuyers, obviously up to a certain threshold. So I just wanted to remind everyone who’s a first time homebuyer that if you’ve been thinking about purchasing your investment, or your first property, now is a really good time to start to look into it. So I’m just going to quickly go through a quick update on what’s actually happening.
But before I do that, I just wanted to express how grateful I am to be living in Australia. You know, I call it the lucky country. I’m a migrant myself. I came with my family from Malaysia 20 years ago, I’ve got a lot of friends at the moment who are living in the US, the UK, the Hong Kong, Hong Kong & Malaysia, and they have it real bad. So I’m just so grateful that our government is doing what they can do stimulate the economy, and I’m praying that you’re doing it responsibly.
But now we have an opportunity in front of us. And I think it’s an opportunity that’s a long time coming. Basically, what’s happening is from the first of August, so that’s in two days. In NSW, so it only pertains to two residents are living in New South Wales, unfortunately, The New South Wales Government will eliminate stamp duty off of the plan homes new homes priced below $800,000. Like I said, it’s been necessary for a while. So what that really means is in the past, I’ve tried very hard particularly with first homebuyers to look for property, you know, up to 650,000 with the limited savings that a lot of first homebuyers have and then having to pay stamp duty on top of that is quite a difficult task for any homebuyers to save. So now, instead of looking for properties up to 650,000, the treshold actually ends at $800,000 in from 800,000 to a million dollars used to have concessional treshold but the bottom line is that you know first homebuyers can now realistically find a property in in New South Wales up to $800,000 and save on this on the stamp duty which my calculations in what’s up to just over 30,000 dollars savings if you are buying a property $800,000 obviously.
The not so good news is that the the stamp duty rebate or concession only ends actually only last for 12 months from the first of August. So from the first of August till the first of August 2021 this scheme will apply. And so basically that’s been bumped up from 650 to $800,000. This is also on top of the current first home owner grant that’s still available. I remember when I bought my first home and I got a $7,000 first time on a grant, and I was very grateful and certainly very happy about it. It was more money in my pocket. But now you have a $10,000 first homeowner grant and obviously not forgetting as well that you can also take advantage of the home builder scheme up to $25,000 for homes that you build between now in the next three months if you sign a contract for you to get into construction. So I think it’s it’s great news. And just as an aside as well, if you are looking for vacant land, the treshold has been brought up also from 350,000 to $400,000. And then it phased out from $400,000 to $500,000. So like I said, it is a pretty significant saving on your stamp duty, should you intend to purchase your first property.
I just wanted to say that we need to ensure that our economy is continue continues to be stimulated. There are a lot of jobs that depend on the construction and building industry. And we’ve got to ensure that it continues to operate. So I want to have a special shout out to all the tradies the sparkies plumbers, bricklayers that rely on the building industry. So I call out to you if you are a first home buyer. There is really no better time now to start to think about getting into your first home. You have stamp duty concessions, you have the first home owner grant and you have if you’re buying a new property also the the homebuilders scheme that you can take advantage of. So I’m signing off just wanted to update everyone on this recent announcement which starts in two days. So look it up. If you’re interested in having a conversation with me and looking into your personal situation, feel free to drop me a line, or visit my website, www.inspirerealty.com and I’ll certainly be in touch with you. Thank you so much and have a great day. Bye for now.