NSW plans to phase out stamp duty – what this could mean for you
Depending on your circumstances there are various outcomes for this proposed change to stamp duty in NSW.
In simple terms, buyers of property in NSW will be given two options:
- To pay their stamp duty at the time of purchase.
- Or to pay it as an annual property tax which remains for the future of the new and any future homeowners.
Depending on circumstances
You currently have a property – There is no change and you will not have to pay any more tax as you will have paid at the time of purchase.
Planning to buy your first home – Under the proposed changes and if eligible, you will have access to the first home buyers grant. Plus the choice to pay a one-off stamp duty or have an annual property tax bill.
Planning to buy your next home – Under the proposed changes you will be given two options. To pay your stamp duty upfront (one-off) or have an annual property tax bill. Note that will Sydney house prices the annual property tax could be $5000 per year.
Investing in property – Investors will be given the choice to pay stamp duty and land tax upfront or an annual property tax.
The time you are planning to stay in the home
When calculating your options you should think about the amount of time that you will be planning to spend in the home. Under the proposed changes if it is longer than 7-10 years it will be cheaper to pay your stamp duty upfront.
It is important to note that these choices will affect the property. Once the choice is an annual property tax, that choice will stay with the property for its life. So as discussed and depending on your circumstances there are various outcomes for NSW plans to phase out stamp duty.
The team at Select Conveyancing will be here for you if these proposed changes come into effect. Contact us about your next property sale or purchase.