As a first home buyer or investor, you probably don't assume that your first property purchase is going to be in the luxury market. Rather, your first home is likely to be a weathered old build that needs some serious renovations.
However, with recent changes to stamp duty legislation in NSW, owning luxury property in Sydney is much more viable than you might think.
Owning luxury property in Sydney is much more viable than you might think.
The NSW government is doing away with hefty stamp duty taxes
As of July 1 2017, a new package of measures introduced by the NSW state government is going to make housing more affordable for first home buyers.
At the heart of these measures is the scrapping of the stamp duty tax for first home buyers of property valued up to $650,000. For properties valued between $650,000 and $800,000, stamp duty will be gradually reduced.
In addition to this measure, insurance duty on lenders' mortgage insurance (LMI) will be abolished. LMI is applicable to instances when you borrow over 80 per cent of a property's value.
How much extra could you put towards your first home with the savings?
According to calculations from the NSW government, the savings are quite significant. Stamp duty on a home worth $800,000 was previously $31,490. With mortgage and transfer fees added, the total would amount to $31,762. Any reduction – even a small one – could shave thousands off your costs.
The abolition of LMI will save you $2,896 on a home valued at $800,000.
The abolition of LMI alone will save you $2,896 on a home valued at $800,000 if you put down a 6.25 per cent deposit of $50,000.
It's never been a better time to get into the luxury property market
With all these savings, you'll be able to put a lot more towards your deposit and potentially afford a property that would have previously been out of your price range.
Crown Group's studio apartments – and some of our one bedroom apartments – are valued under $800,000, which means you could be eligible for stamp duty concessions when purchasing them. We have luxury complexes all over Sydney, from Ashfield and Parramatta to North Sydney and Waterloo – where our latest development Waterfall is situated.
If you've always dreamed of living in a luxury apartment, with all the incredible features our complexes offer (rooftop pools, cascading waterfall features, panoramic city views, the list goes on!) these recent legislative changes could make this a reality. Talk to us today!