The NSW government unveiled the top 20 suburbs where aspiring home owners are buying in.
In the year to 31 July 2022, the NSW government revealed that it has assisted first home buyers with more than half a billion in grants, duty exemptions and concessions.
The top 20 suburbs to receive the benefits were Schofields, Liverpool, Wentworthville, North Kellyville, Box Hill, Parramatta, Austral, Mount Druitt, Campbelltown, Homebush, Wollongong, Blacktown, Penrith, Googong, Kogarah, Lidcombe, Gobbagombalin, Bankstown, Gosford and Kingswood.
But first home buyers will see more support from the government in the coming year, as first home buyers will soon have options when it comes to paying taxes associated with property purchases.
First home buyers will be able to choose between an upfront payment or a smaller annual property tax under the First Home Buyer Choice scheme, which is scheduled to start in January.
Under the tax reform, set to be introduced to the state’s parliament later this year, eligible first home buyers will have the choice of a traditional upfront payment or a smaller annual property fee for properties with a purchase price of up to $1.5 million.
First home buyers who choose to aggregate payments will cough up an annual fee of $400 plus 0.3 per cent of the land value of the property for the time they occupy the property as their principal place of residence. The property will not be locked into the scheme if it is sold.
With 84 per cent of residential properties across NSW falling under the purchase price threshold, the government hopes that the new measure will get more first home buyers onto the property ladder.
During Super Saturday — when a total of 700 properties went under the hammer across the state — NSW state treasurer Matt Kean stated that eliminating the upfront cost of stamp duty can help first home buyers shave years off the time it takes to save a deposit.
“This is all about giving first home buyers the power to choose an alternative to upfront stamp duty,” Mr Kean said.
For a NSW household with the median income that saves 15 per cent of their income, it was previously estimated that stamp duty adds about two years to the time required to save the up-front costs of the average dwelling in the state.
Minister for Homes Anthony Roberts stated the stamp duty reform for first home buyers is part of a broader $2.8 billion housing package announced in the NSW budget.
“The NSW government is also looking at different ways we can boost housing supply,” Mr Roberts said.
“We will leave no stone unturned when it comes to initiatives that will help more people in NSW enter the market and own their own home,” the official proclaimed.
First Home Buyer grants, duty exemptions and concessions will continue alongside the stamp duty option.