{"id":12342,"date":"2017-06-15T15:00:33","date_gmt":"2017-06-15T05:00:33","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=12342"},"modified":"2017-06-15T15:00:33","modified_gmt":"2017-06-15T05:00:33","slug":"nsw-affordability-package-stamp-duty-savings","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/","title":{"rendered":"NSW affordability package: Stamp duty savings"},"content":{"rendered":"

In his column for\u00a0Switzer<\/a>, John McGrath\u00a0discusses the latest\u00a0addition\u00a0to the NSW affordability\u00a0package.\u00a0<\/strong>
\nThe third installment of Government measures to address the affordability struggle in Sydney and Melbourne has been delivered, with the NSW Government announcing a package of reforms commencing July 1.\u00a0\"mcgrath\"<\/a>
\nThis follows announcements by the Federal and Victorian Governments in recent months.
\nThe primary goal of these measures is to help first home buyers.
\nAll three governments are using a variety of avenues to achieve this, including reducing stamp duty, helping young buyers save their deposit and raising housing supply across the board.
\nI\u2019m all for addressing the affordability issue but I\u2019m concerned by how they\u2019re funding this good initiative \u2013 largely by disincentivising investor activity and foreign ownership.<\/p>\n

Here\u2019s a rundown of the NSW Government\u2019s affordability package:<\/h4>\n
    \n
  • Stamp duty abolished on first home purchases up to $650,000 (new and existing property);<\/li>\n
  • Stamp duty concessions on first home purchases up to $800,000 (new and existing property);\u00a0\"sydney\"<\/li>\n
  • Stamp duty on lenders\u2019 mortgage insurance abolished for all buyers. This is usually 9% of the premium, so it\u2019s a pretty hefty impost. This will benefit young buyers because LMI is only charged when a client\u2019s deposit is smaller than usual;<\/li>\n
  • First home buyers who are building their first home will receive a $10,000 grant for properties worth up to $750,000;<\/li>\n
  • First home buyers purchasing a new property, such as an apartment off the plan or newly completed, will also receive a $10,000 grant for properties worth up to $600,000;<\/li>\n
  • The 12-month deferral of stamp duty for residential off-the-plan purchases by investors will be scrapped. The $5,000 New Home Grant Scheme will cease;<\/li>\n
  • The stamp duty surcharge paid by foreigners will double from 4% to 8%. Land tax charges to foreigners will increase from 0.75% to 2%. Foreign developers will be exempt;<\/li>\n
  • Housing supply will be increased through a variety of measures, including making development approvals simpler and council re-zonings faster. Plus, $3 billion will be spent on new roads, schools and other facilities surrounding new developments; and<\/li>\n
  • The Government will focus on raising supply in key urban hubs, including Belmore\/Lakemba, Burwood\/Strathfield\/Homebush, Campsie\/Canterbury, Cherrybrook, Frenchs Forest, Glenfield, Leppington town centre, Anzac Parade corridor, Riverwood, Schofields town centre, Seven Hills\/Wentworthville, St Leonards\/Crows Nest, Telopea, Turrella\/Bardwell Park and Westmead.<\/li>\n<\/ul>\n

    The stamp duty savings are big news for young buyers.<\/h4>\n

    Putting the transfer duty and LMI duty savings together, on a $650,000 purchase with a $50,000 deposit, a young first home buyer stands to save $26,857.
    \nOn a $700,000 purchase, the saving is $18,786.\u00a0\"economy
    \nAnd so on.
    \nGetting the deposit together is often the hardest step, rather than affording the repayments.
    \nSo removing (or reducing) stamp duty from that equation is a big boost.<\/strong>
    \nCoreLogic\u2019s recent\u00a0Perceptions of Housing Affordability<\/em>\u00a0report found 48% of NSW respondents felt stamp duty was the most significant obstacle to affordability and 74% felt removing or reducing it would help.
    \nIt could be argued that stamp duty cuts and grants for young buyers will ultimately raise property prices due to higher competition.\"first
    \nHowever, with Sydney and Melbourne now at their peak, I think softening market conditions might balance out any price effect from greater first home buying activity, especially if there are fewer investors in the market due to tighter lending restrictions.
    \nFirst home buying has been low in Sydney for many years.<\/strong>
    \nCoreLogic quotes recent ABS statistics showing that first home buyer activity in NSW hit a record low of 7.5% of new owner occupier mortgages last September and has increased only marginally since then to 8% in March this year.
    \nThe long term average is 17%, so we\u2019re a long way off that.<\/p>\n

    But things should change now.<\/h4>\n

    CoreLogic reports that 20% of houses and 33.5% of apartments sold in Sydney over the past 12 months were priced at $650,000 or less.
    \nAcross regional NSW, these figures jump to 73.3% of houses and 74% of apartments.\u00a0\"SydneyTerraces\"
    \nAbout 34% of houses and 51% of apartments in Sydney sold for $800,000 or less.
    \nRegionally, 82.5% of houses and 78.4% of apartments sold for up to that amount.
    \nSo that\u2019s a lot of sales that now qualify for stamp duty discounts.<\/strong>
    \nThe great thing for regional first home buyers is that they\u2019re benefitting from affordability measures aimed at city buyers contending with much higher home values.
    \nThere\u2019s no end date for the stamp duty changes, but don\u2019t be complacent.
    \nJumping in quickly is the best way to take advantage of them and beat any rush.
    \nThere\u2019s often a lag period between the introduction of such measures and peak take-up, so get organised to buy after July 1 now!<\/p>\n","protected":false},"excerpt":{"rendered":"

    In his column for\u00a0Switzer, John McGrath\u00a0discusses the latest\u00a0addition\u00a0to the NSW affordability\u00a0package.\u00a0 The third installment of Government measures to address the affordability struggle in Sydney and Melbourne has been delivered, with the NSW Government announcing a package of reforms commencing July 1.\u00a0 This follows announcements by…<\/p>\n","protected":false},"author":176692471,"featured_media":9925,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-12342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-story"],"yoast_head":"\nNSW affordability package: Stamp duty savings - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NSW affordability package: Stamp duty savings - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"In his column for\u00a0Switzer, John McGrath\u00a0discusses the latest\u00a0addition\u00a0to the NSW affordability\u00a0package.\u00a0 The third installment of Government measures to address the affordability struggle in Sydney and Melbourne has been delivered, with the NSW Government announcing a package of reforms commencing July 1.\u00a0 This follows announcements by...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2017-06-15T05:00:33+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"NSW affordability package: Stamp duty savings\",\"datePublished\":\"2017-06-15T05:00:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/\"},\"wordCount\":761,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"articleSection\":[\"Latest Stories\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/\",\"name\":\"NSW affordability package: Stamp duty savings - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2017-06-15T05:00:33+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/nsw-affordability-package-stamp-duty-savings\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"NSW affordability package: Stamp duty savings\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/rolanrush\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"NSW affordability package: Stamp duty savings - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/","og_locale":"en_US","og_type":"article","og_title":"NSW affordability package: Stamp duty savings - Realty Talk","og_description":"In his column for\u00a0Switzer, John McGrath\u00a0discusses the latest\u00a0addition\u00a0to the NSW affordability\u00a0package.\u00a0 The third installment of Government measures to address the affordability struggle in Sydney and Melbourne has been delivered, with the NSW Government announcing a package of reforms commencing July 1.\u00a0 This follows announcements by...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/","og_site_name":"Realty Talk","article_published_time":"2017-06-15T05:00:33+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"NSW affordability package: Stamp duty savings","datePublished":"2017-06-15T05:00:33+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/"},"wordCount":761,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/#primaryimage"},"thumbnailUrl":"","articleSection":["Latest Stories"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/","name":"NSW affordability package: Stamp duty savings - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/#primaryimage"},"thumbnailUrl":"","datePublished":"2017-06-15T05:00:33+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/nsw-affordability-package-stamp-duty-savings\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"NSW affordability package: Stamp duty savings"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/12342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=12342"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/12342\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=12342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=12342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=12342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}