NSW stamp duty moves likely to spur new building

Posted on 11/06/2010  

Mortgage broker Mortgage Choice has welcomed the New South Wales Government’s $140 million property construction initiative as a solid step to addressing housing under-supply and encouraging building activity. Buyers of off-the-plan homes could save as much as $22,490, as will retirees who buy a newly-built home. 

From 1 July the Home Builder’s Bonus will encourage construction activity by providing stamp duty concessions for buyers of new homes and properties bought off-the-plan. The NSW Government will abolish stamp duty for owner-occupied and investor purchases of off-the-plan properties valued up to $600,000 that are in pre-construction stage, with possible savings totaling up to $22,490.  

It will also cut stamp duty for people purchasing newly-constructed properties worth up to $600,000, by 25%. This offers possible savings of up to $5,623.  

People aged 65 years and over who sell their home and buy a newly-constructed property valued at under $600,000 will not pay stamp duty. This will offer the state’s senior citizens with a possible saving of up to $22,490.  

Mortgage Choice spokesperson Kristy Sheppard says the moves will encourage demand for newly-constructed homes. “Stamp duty is often the largest additional expense buyers face,” she says. “It’s pleasing to see the proposed savings will be shared among all buyer groups, not just first-timers.” 

She says lenders have been reluctant to finance residential developments, so the Home Builder’s Bonus is well-timed. “Encouraging people to pre-purchase off-the-plan will hopefully pour more start-up funding into these projects,” she says. “Although the stamp duty discounts are proposed for only two years, they should help ease the short-term demand for existing dwellings and help more families, investors and singles to enter or re-enter state’s property market."

ENDS

« Back