A $25,000 win for first home buyers
The NSW government has moved to overhaul property tax and announced major changes that includes a $25,000 grant for first home buyers to help them enter the property market.
NSW Treasurer, Dominic Perrottet said, "The message which comes through very clear again and again is the huge challenge of achieving home ownership for younger generations."
The number of people aged under 40 has plummeted with the government's intergenerational report showing 60 per cent of people born between 1942 and 1951 owned their homes by the ages of 25 to 34. This compares to just 45 per cent of people born between 1982 and 1991.
The National Housing FInance and Investment Corporation found affordability was worst for potential first home buyers in Sydney. Less than 20 per cent of properties in Sydney are classified as "affordable" and the house price to income ratio is around nine times incomes nationally - the worst in Australia.
Data from leading property research provider, CoreLogic indicates house prices in Sydney rose 3.5 per cent last month with the median house price across the city now exceeding $1.1 million.
The planned reforms by the NSW government could see home ownership rise by 6 per cent, meaning more than 300,000 residents could purchase a home in NSW.
The $25,000 grant would replace the existing stamp duty concessions for first home buyers and allow them to choose paying stamp duty or an annual levy.
Those saving for a home deposit amid surging property prices are currently expected to also save for stamp duty on high value homes. The ability to enter the market under these conditions are often unmanageable.
First home buyers who currently pay partial stamp duty on properties priced above $650,000 and full stamp duty above $800,000 were particularly supportive.
Dominic Perrottet believes stamp duty on property purchases will be completely phased out by 2050. The reforms follow recommendations by Dr Henry of Australia's Future Tax System Review.
"It will improve housing affordability, especially for first home owners, contribute to labour mobility and reduce the volatility of the state budget over time," Dr Henry said.
The proposed reforms including a $25,000 injection is huge step at assisting first home buyers entering the market. To improve your borrowing capacity further, click here for a list of hints or speak to your mortgage broker.
A $25,000 win for first home buyers
The NSW government has moved to overhaul property tax and announced major changes that includes a $25,000 grant for first home buyers to help them enter the property market.
NSW Treasurer, Dominic Perrottet said, "The message which comes through very clear again and again is the huge challenge of achieving home ownership for younger generations."
The number of people aged under 40 has plummeted with the government's intergenerational report showing 60 per cent of people born between 1942 and 1951 owned their homes by the ages of 25 to 34. This compares to just 45 per cent of people born between 1982 and 1991.
The National Housing FInance and Investment Corporation found affordability was worst for potential first home buyers in Sydney. Less than 20 per cent of properties in Sydney are classified as "affordable" and the house price to income ratio is around nine times incomes nationally - the worst in Australia.
Data from leading property research provider, CoreLogic indicates house prices in Sydney rose 3.5 per cent last month with the median house price across the city now exceeding $1.1 million.
The planned reforms by the NSW government could see home ownership rise by 6 per cent, meaning more than 300,000 residents could purchase a home in NSW.
The $25,000 grant would replace the existing stamp duty concessions for first home buyers and allow them to choose paying stamp duty or an annual levy.
Those saving for a home deposit amid surging property prices are currently expected to also save for stamp duty on high value homes. The ability to enter the market under these conditions are often unmanageable.
First home buyers who currently pay partial stamp duty on properties priced above $650,000 and full stamp duty above $800,000 were particularly supportive.
Dominic Perrottet believes stamp duty on property purchases will be completely phased out by 2050. The reforms follow recommendations by Dr Henry of Australia's Future Tax System Review.
"It will improve housing affordability, especially for first home owners, contribute to labour mobility and reduce the volatility of the state budget over time," Dr Henry said.
The proposed reforms including a $25,000 injection is huge step at assisting first home buyers entering the market. To improve your borrowing capacity further, click here for a list of hints or speak to your mortgage broker.