It’s YOUR choice!

Changes to the NSW property tax system will give first home buyers the choice between paying an annual property tax or stamp duty.

What is the actual situation?

Nobody likes Stamp Duty, do we? It is, in our opinion, an unfair tax when the median house price in Sydney is now well over $1.6 million.?

???????? ?? ???????? ???? ?????????? ???????? ????????????, ?????? ???????????? ?????????????? ?????????? ?????????????? ???????? ???????? ???? ???????????? ?? ??????????????. Most clients have a good income and can afford the loan, but where they come unstuck is the time it takes to save the additional money to pay the stamp duty.

Currently, the maximum NSW house price to completely avoid paying stamp duty is $650,000- now please tell me where you can buy for that price?

I live in Kellyville and work in Double Bay and there is nothing available in those areas or anywhere in between in that price range.

If you are a first home buyer and just want to purchase an apartment at the medium value of $1M- then the stamp duty costs you $40,305.

That alone takes 12 months saving $775 per week just to pay for the stamp duty. Yikes!

What’s changing?

Finally there’s some change, the official launch date being 16/01/23, to help first home buyers get into the market quicker - and hopefully? ease some of the pressure on the rental market. Under the new program, first home buyers purchasing properties for up to $1.5 million will be able to choose to pay an annual tax of $400 plus 0.3% of the land value (not the purchase price) instead of stamp duty.?

Are you eligible?

If you’re over 18, an Australian citizen or permanent resident and purchasing your first home up to $1.5 million, you are!

So, are you better off paying stamp duty or a property tax?

Based on the fact the median time people hang onto their homes in NSW is ten-and-a-half years, you'd probably be better off paying a smaller annual tax rather than a lump sum. But, you should always get independent financial advice. Get in touch here and I’ll crunch some numbers for you!

Hot offers

This week, I have not one but TWO hot offers to share!

?? I thought I’d let you know about the Macquarie Bank 1 year owner occupied fixed rate of 4.89%pa reverting to 4.29%pa variable rate, with a comparison rate of 4.61%pa based on a loan of $500,000 - subject to lenders credit approval terms and conditions.

That 1 year fixed rate is really competitive at the moment, and not a huge premium on the current variable rates.

?? The second hot offer is a HUGE cashback from uBank for purchasers and refinances:

From today, you could enjoy cashback of?up to $6k?when you?purchase?or?refinance?on eligible ‘Neat & Own’ home loans and have an LVR of?80% or less.?

How it works:

?$4k cashback?for loans between $250,000 and under $1m

?$6k cashback?for loans of $1m or more?

?Apply between?10 November 2022 – 28 February 2023?and settle by 30?April?2023

?Not available for refinances within the NAB Group?

Curious? Give me a call: ?? 0412 838 490