First home buyers in Queensland could save up to $17,350 under new state government stamp duty concessions as of 9th June 2024 (initially thought to be occurring 1st July 2024).
This article will focus on the changes that are currently in effect and how they will benefit First Home Buyers.
What are the changes?
1. The first homeowner concession on transfer duty will increase from $500,000 to $700,000, with the concession then phasing out up to values of $800,000.
2. The first home vacant land concession threshold will increase from $250,000 to $350,000, with the concession then phasing out up to values of $500,000.
The changes to transfer duty concessions will target first home buyers in the spectrum of the market where they are more likely to face affordability challenges and find it harder to purchase a home.
What does this mean for me?
If you’re a First Home Buyer you may be wondering what this actually means for you?
In simple terms, any Stamp Duty that would’ve previously been paid under the old rules is a direct saving into your pocket.
A $700,000 property previously had Stamp Duty of $17,350 payable. So under the new concession that $17,350 is now in your back pocket.
Let’s have a look at a practical example:
First Home Guarantee + New Stamp Duty Concession
Sarah & Tim are looking at purchasing a $700,000 property and taking advantage of the First Home Guarantee Scheme where only a 5% Deposit ($35,000) + Costs are required.
Under the previous Stamp Duty concession rules the total costs were approx. $22,683 (Stamp Duty, Transfer Fee, Mortgage Registration Fee, Solicitor & Building & Pest Fee).
However, by removing the $17,350 Stamp Duty payable on a $700,000 property this reduces the costs to just $5,333). So, on a $700,000 property purchase under First Home Guarantee Scheme, all that’s required is $40,333 (5% + costs).
Concession between $700,000 - $800,000
As the concession between this price range is tiered please see below some examples of what Stamp Duty will cost in the below price range:
These changes are a step in the right direction to help First Home Buyers get into an extremely competitive market.
At LBK we’re passionate about helping First Home Buyers understand your options and getting you into a property much sooner then you initially think.
Reach out today to discuss your options:
Mobile: 0401 225 713
Email: lmckean@lbklending.com.au
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