This means that if that property owner decides to sell the house after 10 years (the median holding period), they have paid a total of $26,110 in annual property tax, which is way lower than the upfront stamp duty fee. This is equivalent to a savings of $24,640! It will take 19 years for the annual tax to breakeven with the stamp duty cost.
When Can First Home Buyers Start Accessing This Scheme
The NSW First Home Buyer Choice annual tax option will be fully operational on 16 January 2023.
However, starting tomorrow, first home buyer choice, is available to everybody who will purchase between Saturday and 15 January will be able to access the scheme. Eligible first home buyers will still be required to pay stamp duty but may apply for a refund.
If you are a first home buyer looking to buy a property in Sydney, the First Home Buyer Choice is your chance to significantly reduce upfront costs involved in buying a property as well as the time you need to save for deposit. You still have the option to pay stamp duty if you prefer, but the annual property tax option is seen as a better and more convenient alternative.
It also appears likely that this scheme may be used in conjunction with the First Home Guarantee. This enables eligible first home buyers to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI), which in combination forms a great incentive for potential first home buyers. This will be confirmed as more information about the First Home Buyer Choice scheme is released.
Expert Help and Advice for First Home Buyers
Work with a trusted mortgage broker near you to secure your first home and help you navigate the NSW First Home Buyer Choice scheme and other government grants you can access. If you want to learn more about buying your first property, we’ve got helpful articles for first-time home buyers like you. Just click this link.
Finally, when you’re ready, you can book a free no-obligation consultation with our senior mortgage broker here.
The annual tax property tax option is an excellent boost for first home buyers to finally make the move towards purchasing their first home. This is indeed a historic law that will benefit thousands of aspiring property owners in NSW. For more questions regarding this program, contact Lendstreet Mortgage Brokers.