Recently, the government of New South Wales proposed to offer first home buyers an interesting choice to help them get into the property market sooner.

Homebuyers can opt to choose between a large amount of stamp duty or…

An annual land tax of a much smaller amount.

Now, what are the implications of each option?

In today’s episode, we are going to weigh the pros and cons between saving up another 5% or so on top of your deposit for stamp duty OR committing to an annual land tax bill of a much smaller amount.

We also discuss the possibilities of other states following suit, the qualifications to be considered for this offer, and how both stamp duty and land tax are calculated.

If you enjoy the show, do like, rate, subscribe, and share it with others! We have loads of resources available and if you’d like to chat, email us at [email protected]!

We’ll see you on the inside! 

 

Episode Highlights: 

1. NSW government introduces land tax or stamp duty option [04:20]
2. What is the criteria to qualify? [08:29]
3. Stamp duty on three different price points [12:23]
4. Land value and tax: the investor option [24:56]
5. Stamp duty vs land tax [30:03] 
6. The difference between land component and property improvements  [33:17]
7. Contesting land valuations [36:17]

 

Links from the Show: 

• https://www.nsw.gov.au/initiative/first-home-buyer-choice
• https://www.savings.com.au/news/faster-home-ownership-for-nsw-first-home-buyers#:~:text=Under%20the%20First%20Home%20Buyer,traditional%20upfront%20payment%20for%20properties.
• https://fhbcalculator.service.nsw.gov.au/

 

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