NSW Premier Gladys Berejiklian has unveiled her government’s new reforms that aim to tackle housing affordability, with more than $1 billion of stamp duty concessions being announced.
First home buyers will be exempt from paying stamp duty for existing and new properties, costing up to $650,000, as of July 1. Those purchasing houses worth between $650,000 and $800,000 are also promised to receive stamp duty discounts. Additionally, the 9 per cent stamp duty typically charged on lenders’ mortgage insurance will no longer exist. The project will be funded by the doubled stamp duty surcharge for foreign investors, and the increased land tax surcharge (from 0.75 to 2 per cent).
The Berejiklian government’s plan to introduce more first home buyers into the housing market, and assist their competition with investors, will also be furthered by a call to remove stamp duty concessions for properties bought off the plan. As well, the $5000 new home grant scheme will be abolished and the ability for investors to defer their payment of stamp duty for 12 months removed.
The package is the government’s first initiative in addressing the issue of housing affordability, one that Ms Berejiklian promised she would prioritise upon becoming Premier in January of this year. The estimated $1.2 billion package is set to attract “thousands more” new first home buyers into the market over the next four years.
The measures announced also included provisions set to boost housing supply. Housing Minister Anthony Roberts stated that councils will be able to borrow more funds for infrastructure at reduced interest rates to accelerate the process of rezoning new developments. There will also be an increase in the involvement of independent panels for Sydney councils, to ensure that development applications are dealt with as swiftly as possible.
While this initiative is a step in the right direction in terms of addressing the concerns of many young people in NSW, it is being criticised for not increasing the construction of affordable housing for low-medium income workers such as nurses, teachers and police.
If you are looking to purchase a new property or sell your existing property, contact Freedman & Gopalan Solicitors on 02 8917 8700 today.