NSW Home Builders Bonus
Posted by taylor | Under property tax Thursday Aug 5, 2010NSW Home Builders Bonus
By: Whitehouse Capital Partners
NSW Home Builders Bonus
The new Home Builders Bonus is a relief from stamp duty introduced by the NSW government. By doing this the government is aiming to increase the viability of developments, making it easier for developers to obtain finance through pre-sales. It applies from 1 July 2010 until 1 July 2012.
Complete exemption from stamp duty will be given to people buying a property off the plan, prior to commencement of building. It also applies to purchases of land under $400,000 and new homes under $600,000.
By purchasing an off the plan unit prior to commencement of construction, an investor can save up to $22,490. The government is also offering a full exemption for seniors purchasing new homes to be used as their principal place of residence.
If construction has commenced, the Bonus will be reduced to 25% of the payable duty. This rate will also apply to new homes where building has been completed.
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