NSW Government Stamp Duty Problem Resolved?

At Kathryn hall Buyers Agency Northern Beaches we have seen through years of experience that Stamp Duty has devastated Australia for generations when it comes to saving for a deposit and buying property.

Have we found a solution to the on going problem?

The NSW government has revealed plans to give first home buyers the option of scrapping the initial payment to an ongoing annual fee.

What it is Now

Traditionally the stamp duty cost is made at purchase, The rate will vary depending on the location and the value of the property but currently in New South Wales, for a home priced between $313,000 and $1.04m, the rate is $9,390, plus $4.50 for every $100 over $313,000. So, for example, the stamp duty on a $750,000 home would be $29,055. It’s usually capitalised on to your mortgage.

The median house price in Sydney as of February 2022 is 1,410,000, the stamp duty of a property of that price  equates to $62,721, obviously there is more variables that comes into play when calculating stamp duty costs like investment or residential property, Area, Etc but this will give you a gage of what to expect.

What the Alternative is.

The structure that the government has proposed is an annual fee of $400 plus a 0.3% payment of property value. The theory is that this will make the property market all the more accessable because of the dramatic price reduction you will need for a deposit.

Going back to the Median Sydney house price as our gage here. 0.3% 1,410,000 is $4230 plus the 400$ Levy on top of that comes to a total of $4630 annual cost or $89 per week.

At Kathryn Hall Buyers Agency we believe There is going to have to be more action from the governing entities to tackle the housing crisis in Australia especially for first home buyers, But this is a step in the right direction.