First Home Owner's stamp duty exemption
It appears that we may be returning to a first home owner's stamp duty exemption for existing dwellings valued at less than $650,000, which is welcome news for first home owners as it greatly reduces the savings burden of entering the property market. The average house price in Penrith is apparently $680,000 so hopefully first home owners in Penrith can find a property under that value, but there are also discounts on stamp duty for properties under $800,000. There will be no return to the first home owner's grant for existing dwellings, but with stamp duty on a $650,000 property being $24,740 this is a significant reduction in the savings required for first home owners.
First home owners currently have an exemption for new dwellings, though typically new dwellings are more expensive and may be out of reach for first home owners. Now the scheme will allegedly be extended to include existing dwellings, which gives greater flexibility for first home owners.
This announcement is recent and while it is meant to start on 1 July, there is no legislation before the parliament yet and at the time of publishing this article the Office of State Revenue was not able to provide any information about the changes. It is important that potential purchasers not run off and sign contracts assuming that they will have access to this exemption until the legislation has actually been updated.
You can find further information about the proposed stamp duty exemption by looking at the government's information about it, you can click on the link to the right to see what properties will be covered. Note that contracts exchanged prior to 1 July will not be covered, it is the exchange date not the settlement date that you need to worry about.
What should I do?
Make an appointment to see Bruce Coode and obtain advice before you purchase your property. He will not charge you to look over contracts or discuss the potential purchase of a property with you for the first two or three properties. Bruce has been acting for people buying and selling property for forty years, he is experienced in dealing with stamp duty and stamp duty exemptions, and in dealing with government agencies like the Office of State Revenue. He will be able to help you understand what you are entitled to.
Bruce understands more than your basic conveyance and understands that for many people the purchase of a property is one of the largest financial decisions they will make. He will explain things to you in plain English and help you to navigate the stressful situation that is buying a house.
If you would like some more information about purchasing a property generally, or about our firm specifically, then read some more of our articles about property and real estate.