Building a new home just got a whole lot easier!

There’s no point in sugar coating it because finances have become a little tight for most of us with everything going on in the world. But things are looking up for people wanting to buy their first home with changes to First Home Buyer Choice having kicked off from January 1^st this 2023.

But what is it?

First-home buyers in NSW are now able to choose between an annual property fee or an upfront stamp duty payment. In laymen’s terms? Basically, people buying their first property are able to opt out of paying stamp duty upfront in exchange for a smaller annual tax.

The scheme is all about reducing the cost of entering the property market by removing stamp duty—which we all know can feel like a massive extra expense on top of the cost of a house.

It means first home buyers will be able to opt in for an annual property tax plus a percentage of the land’s value instead of making a lump sum payment.

Who’s eligible?

 So, if you’re looking at buying your first home and you’re over 18—you’re eligible.

The home has to be $1.5 million or less, you must be an Australian citizen or permanent resident, and you have to move into the house within the first year and live in it for at least six months.

Shared Equity Home Buyer Helper

 Saving for a large deposit can be daunting. But after 23 January 2023 the government is going to be easing the burden for eligible applicants with the launch of the NSW Shared Equity Home Buyer Helper.

If you’re a single parent taking care of children, single aged 50 years or older, or a first home buyer who’s a key worker (think teacher, early childhood educator, nurse, police officer, paramedic), then you can check your eligibility and take the next step to owning your own home.

How does it work?

 If you can get together a 2% deposit, the Government will contribute up to 40% for a new home. It means they have a percentage share of your home equivalent to what they’ve contributed. Lenders Mortgage Insurance is not required, potentially saving you additional thousands.

As long as you remain eligible for the initiative, no repayments are required, and no rent or interest will be charged. You can also make voluntary payments to progressively increase your ownership share in the property.