Jordan White
27th March 2023
First home buyer concessions in New South Wales: Everything you need to know
| ID | NAME |
|---|---|
| 1 | James |
| 2 | Alan |
| 3 | Mike |
| 4 | Rodry |
UNO’s guide to first home buyer concessions in New South Wales (NSW).
Trying to buy a home in NSW? With a mean dwelling price of $1.12 million according to the ABS, property in NSW ranks among the most expensive in the world.
It can be particularly challenging for first home buyers trying to enter the market.
Saving for a 20% deposit in Sydney takes an average of 14.1 years, according to The 2022 ANZ Corelogic Housing Affordability Report.
State and federal governments offer several concessions to help first home buyers with the rising cost of buying a property. Here’s everything you need to know about first home buyer concessions in NSW.
In a nutshell, NSW concessions include:
- First Home Buyer Choice - Paying a monthly land tax to offset upfront stamp duty
- Stamp duty waivers on homes valued less than $650,000 for eligible first time buyer
- Concessional stamp duty rates for first home buyers for property valued $650,000-800,000
- A $10,000 First Home Owners Grant when building a new home valued under $600,000
- Federal schemes including the Home Guarantee Scheme, Help to Buy Program, and First Home Super Saver Scheme.
Want to take advantage of NSW first home buyer concessions? Talk to a UNO broker today.
NSW Stamp Duty Concession: First Home Buyer Assistance Scheme
No stamp duty for eligible first home buyers on properties valued under $650,000, with concessional rates for properties valued up to $800,000.
Stamp duty - also known as transfer duty - is a property tax payable on the purchase of commercial and residential properties, vacant land, and businesses.
Eligible buyers can apply for a transfer duty concession under the NSW governments’ First Home Buyer Assistance scheme.
Eligible first home buyers purchasing a new or existing home worth less than $650,000 are exempt from stamp duty. Concessional rates are available for homes worth $650,000 to $800,000.
For those purchasing vacant land, no stamp duty is payable on land valued less than $350,000 while a concessional rate is available for land valued $350,000 to $450,000. The UNO stamp duty calculator can help you estimate your stamp duty. .
First Home Buyers Grant (FHOG)
The First Home Owner Grant (FHOG) is a national scheme co-funded by federal and state governments designed to help first-time homeownership for eligible buyers.
In NSW, A $10,00 FHOG grant is available to eligible buyers on the purchase of a new or substantially renovated home valued $600,000.
For those building on land, the combined land and construction value must not exceed $750,000.
Recipients of the FHOG are required to live in the home for at least six months, not have owned a home before, and not be a company or trust.
First Home Buyer Choice
From 16 January 2023, first home buyers can opt to pay an annual property tax instead of transfer/stamp duty under the NSW government’s First Home Buyer Choice Scheme.Aiming to reduce the upfront costs of home ownership, buyers can pay $400 plus 0.3% of their property’s land value annually.
If the property is used for investment purposes, the rate is $1500 plus 1.1% of the property's land value annually.
Key eligibility for the First Home Buyer Choice scheme includes:
- An Australian citizen / permanent resident aged above 18
- Purchasers of property have not owned or co-owned a residential property in Australia before
- Have not received a First Home Buyer Grant or stamp duty concession
- Signed property contract after 11 November 2022
NSW Shared Equity Home Buyer Helper
Under this scheme, the NSW government contributes a portion of a buyer’s home value in exchange for a stake in their property.
Current eligible groups include single parents, single people aged above 50, and selected public servants including nurses and teachers. At least a 2% deposit is required.
No rent or interest is payable on the government’s share of the property, but they will take a share in the profits when you sell it.
You can make voluntary repayments to buy back your share of the property over time.
A similar scheme, Help to Buy, is run by the federal government.
Home Guarantee Scheme (HGS)
The Home Guarantee Scheme enables eligible homebuyers to purchase a home with a 5% deposit and no lender’s mortgage insurance. A 2% deposit option is available for eligible single parents.
The Home Guarantee offers 35,000 first homeowners support to buy a new or existing home with a 5% deposit alongside a waiver on LMI annually.
Applicants need to be first home buyers, make less than $125,000 annually ($200,000 for couples), have a deposit of at least 5-20% of the property’s value, and meet other conditions set out by the NHFIC.
For single parents, the Family Home Guarantee (FHG) requires a 2% deposit with the government guaranteeing the other 18% of the property’s value.
Introduced in 2022, the Regional First Home Buyers Guarantee is a similar scheme for rural Australian Citizens.
First Home Super Saver Scheme (FHSSS)
The FHSSS enables eligible first homebuyers to use up to $50,000 (or $15,000 per year) worth of voluntary superannuation contributions towards a house deposit.
