Now you may have gotten wind of a proposed stamp duty reform, which is intended to benefit NSW first home buyers.
The reform called First Home Buyer Choice, proposes to give first home buyers of properties up to $1.5M the option to not pay stamp duty, and instead pay an annual property tax.
The annual tax is calculated at $400 plus .3% of the land value.
As a rough calculation, the annual tax on a $1.5m home would be between $1500-$2300 a year.
Now before you get too excited the bill is yet to be passed, and it does face some headwinds.
Some argue that rather than improving affordability, removing stamp duty will just increase buyers budgets which will then push property prices higher- just as other first home buyer incentives have done.
There are plans to have the legislation in play by January 2023 so time will soon tell whether the move leads to a mini boom in NSW for property with prices up to $1.5M
If you’d like to find out more, I’ve included a link to the NSW government website here: https://bit.ly/3Vixdrh
Feel free to get in touch if you’d like to chat about this contentious topic further.