Project Marketing - First Home Buyer Choice

First Home Buyer Choice

First home buyers have the option to pay either upfront stamp duty or a smaller annual property tax to lower their initial costs

What is First Home Buyer Choice?

The NSW Government is offering first-time homebuyers the opportunity to reduce their initial expenses

Eligible first home buyers can choose a reduced annual property tax instead of upfront transfer duty for properties up to $1.5 million.

If you are eligible, you can choose between:

1.

Paying transfer duty based on the purchase price or current market value of your property, whichever is higher

OR

2

Paying a smaller annual property tax based on the land value and use of the property

How is property tax calculated?

The property tax is calculated based solely on the land value of the property, without considering any additional structures or improvements made on it

Property tax rates:

Owner-occupiers: $400 + 0.3 per cent of the land value.

Residential investors: $1,500 + 1.1 per cent of the land value.

Checklist for Eligibility

*You must be an individual (not a company or trust)

*You must be 18 years old or over.

You, or at least one person you’re buying with, must be an Australian citizen or permanent resident

You or your spouse must not have previously:

owned or co-owned residential property in Australia received a first home buyer grant or duty concessions

You must move into the property within 12 months of settlement and live in it continuously for at least six months

Vacant land must begin construction within 2 years and finish within 5 years of purchase Once completed, the property must be continuously occupied for 6 months within 12 months, without any other use of the land

You must sign the contract on or after 11 November 2022

A new or existing home in NSW with a value up to $1,500,000

Vacant land in NSW, valued at up to $800,000, intended for building your first home

To apply, you must complete an application form and provide all necessary supporting evidence to your conveyancer or solicitor, who will lodge your application to Revenue NSW