First home buyers in NSW stand to save up to $35,000 based on the first home buyers incentives released last week. The government has recognised some of the challenges for first home buyers. These include rising house prices, competition from overseas and local property investors.
The biggest advantage I see is it helps first home buyers reduce the amount savings they need to buy a property. They can now focus on saving 5-10% deposit as opposed to 10-15%to enter the market before.
To enter the property market you will still need to have saved at least a 5% deposit. You also need to allow for mortgage insurance as 2-4%. And have a buffer of 1% to cover other costs like conveyancing, council fees, bank fees etc.
Incentives to help first home buyers enter market faster
- abolish stamp duty on all homes up to $650,000
- give stamp duty relief for homes up to $800,000
- provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000
- abolish insurance duty on lenders’ mortgage insurance
- ensure foreign investors pay higher duties and land taxes
- no longer allow investors to defer paying stamp duty on off-the-plan purchases.
Changes will take effect from July 1 2017. For more details visit https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/
If you are a first home buyer and need some help to find out how much can borrow, find out if you are eligible for these new grants get in touch.
Theo Angelopoulos is mortgage broker with over 15 years of banking and finance experience. Theo is the Director and Founder of The Loans Analyst. A boutique mortgage broking advice firm based in the Sydney CBD that helps clients to buy property, provide strategic loan structuring advice and helping get a great deal on their home loan.