Big changes to NSW Stamp Duty

This sounds like a kick-start to NSW, especially for new dwellings:

"In what he described as an "Australian first", Mr Roozendaal announced the centrepiece of his budget: for the next two years from July 1, stamp duty would be cut to zero for people buying a home or apartment worth under $600,000 off the plan.

The measure, which represents a saving of $22,490 on the purchase of a new home, is forecast to cost the government $60 million a year.

For anyone buying a new home already under construction or newly completed and worth up to $600,000, there will be a stamp duty cut of 25 per cent or $5623.

And in what is cast as a measure to assist downsizing by retirees, no stamp duty will be payable for anyone aged over 65 who buys a newly built home worth up to $600,000.

The government has already announced it will cap the amount councils can charge developers on new developments to $20,000."


http://www.smh.com.au/nsw/states-economy-back-in-the-black-with-101m-surplus-20100608-xs4j.html
 
The government has already announced it will cap the amount councils can charge developers on new developments to $20,000."[/I]

http://www.smh.com.au/nsw/states-economy-back-in-the-black-with-101m-surplus-20100608-xs4j.html

Savanna100, ...... apparently the local councils are not impressed by the decision to cap development contribution charges to $20,000, .. You can bet that they will find other ways to replace the lost revenue from developers.

It is certainly a step in the right direction by the state government though to encourage more development, but I tend to think it is too little too late, .... most of the developers have already jumped the borders and taken business elsewhere.

Mystery
 
I talked to my former Council boss yesterday and asked him what he thought about these changes (some of wich have been announced before todays Budget) and he reminded me that, being a rural Council, they dont charge anything like $20k per dwelling, (more like $7k) so, it is probably the larger urban NSW Councils that charge that much.

However, hidden away in the detail are changes that will require Councils to re-write their section 94 plans...not a quick job at all.
 
One of our Councils charges $30K. It's a rural area. They claim it's to be able to expand the dam capacity to cope with the extra people. I'm not convinced. :mad: The other Council we deal with has the same issues and doesn't charge anywhere near as much.
 
Thanks goodness there is something to address the shortage of new stock which is the biggest issue in housing for NSW at least. We don't need anymore support for existing stock (or price drivers in the form of no SD).

I guess all the D&G's will come out now saying that the govt. is pushing people into OTP which is inherently risky (and it can be ;)).
 
Great, but did they forget the infrastructure again?

What's wrong with these people.

They should be building new roads and widening the motorways to cope with the extra traffic
 
OMG the NSW gov making a GOOD decision, 2012 must be the end of the world!:eek:

Seriously, this is very very very good especially the exemption for over 65. Commonsense. IT frees up stick in the area needed most, older family suburbs and puts older australians in places of better care and enjoyment.

Peter 14.7
 
... very good especially the exemption for over 65.

Let's now wait for the raft of Qs from newbies asking how they can buy a property OTP in their grandfather's name to avoid stamp duty...and how can it be left to them in a will / transferred to them later with no SD or CGT :p:D:D
 
Seriously, this is very very very good especially the exemption for over 65. Commonsense. IT frees up stick in the area needed most, older family suburbs and puts older australians in places of better care and enjoyment.

Peter 14.7

Is it capped at $600k though or is it scaled back for every dollar above $600k?
 
Another Variable for Uncertainty

This new legislation undermines those with existing properties in growth corridors where OTP developments are set to skyrocket. Why pay for my nine year old apartment when I can have an OTP unit with new fittings?
 
This new legislation undermines those with existing properties in growth corridors where OTP developments are set to skyrocket. Why pay for my nine year old apartment when I can have an OTP unit with new fittings?

I think that's the idea. ;)

More supply means lower prices. The comment that Developers will raise prices does not work when demand is low. From the insider knowlege I have of developers, many are desperate at the moment, they will be happy just to get projects going.

Peter
 
Top