The hottest news in property land this week is the announcement that our Stamp Duty system is getting a makeover- for first home buyers.
The new scheme is called First Home Buyer Choice. Under the new scheme, first home buyers, purchasing a property up to $1.5M will be able to choose between either paying a lump sum, or a smaller annual property tax of $400 plus 0.3 per cent of the land value of the property payable every year.
The idea is that by removing one of the biggest upfront costs more first home buyers can purchase property sooner.
The proposed new duty structure is part of a larger overhaul in the annual budget to make property more accessible and affordable, and the scheme will commence from January 2023, with more details on how it is to operate due out in the months ahead.
Theres been a lot of debate as to whether this change is for the better. Some think that the upfront saving will just encourage buyers to spend more on the property purchase, pushing up prices, then there’s the fact that with this new method the govt stands to make a lot more tax revenue in the long run, because the tax is increasing as land values go up.
It’s an interesting issue in any case, and we can only hope it works as intended- to make home buying more accessible.
That’s all for this week’s update- and as always if you have any questions please do get in touch.