In an exciting move for first home buyers, the Western Australian government has recently announced significant changes to the stamp duty system, specifically targeting first time buyers. These changes to the First Home Owner Rate of Duty and the First Home Buyer Duty Concession are set to make homeownership more accessible for many Western Australians. In this blog post, we'll dive into the key updates, explain how they work, and highlight how buyers can benefit from the new policies.
What is stamp duty and why does it matter?
Before we explore the recent changes, it's essential to understand what stamp duty is. Stamp duty is a tax imposed by the state government on the purchase of property. The amount payable depends on the property's value and the type of transaction. For first-time buyers, this can often be a significant upfront cost. However, recent adjustments to WA's stamp duty system are designed to ease this financial burden and assist more people in entering the property market.
Key changes to the WA first home buyer stamp duty benefits
The announced changes increase the value of the vacant land and homes that are eligible for no WA stamp duty or a reduced rate of duty.
For the purchase of vacant land:
- no stamp duty is paid on land valued up to $350,000 (previously $300,000)
- reduced stamp duty is paid on land valued between $350,000 and $450,000. This concession is at a rate of $15.39 for every $100 over the no duty threshold $350,000.
The great news is that house and land packages fall into this category as stamp duty is only payable on the land portion.
For the purchase of a completed home:
- no stamp duty is paid on properties up to $500,000 (previously $450,000)
- reduced stamp duty is paid on properties up to $700,000 in Perth Metro and Peel regions ($750,000 for properties outside these regions). This concession is at a rate of $11.90 for every $100 over the no duty threshold of $500,000.
How do these changes benefit buyers?
- Lower upfront costs: One of the most significant advantages of the updated stamp duty structure is the reduction in upfront costs for first time buyers. With higher eligibility thresholds, more properties now qualify for the WA stamp duty benefits, giving first-time buyers a broader range of options—especially in competitive markets like Perth.
- Encouraging homeownership: These changes are designed to make it easier for first time buyers to step into the property market. By offering relief on stamp duty, the government is helping reduce the financial pressure, making homeownership more achievable. This not only benefits buyers but also helps create a more stable and balanced housing market in WA.
- More enticing to build new: With a range of Cedar Woods land opportunities in WA available under the $450,000 threshold, building your dream home has never been more enticing.
Eligibility criteria for the WA stamp duty concessions
To benefit from the expanded First Home Owner Rate of Duty and the First Home Buyer Duty Concession, buyers must meet the following criteria:
- Must be purchasing your first home and be over 18 years old.
- At least one applicant must be an Australian citizen or permanent resident.
- Buyers must live in the property for a continuous period of at least six months, starting within 12months of property completion.
For more details and to confirm your eligibility, refer to the WA Government's official website or consult a mortgage broker.
How to apply for the WA stamp duty concessions
Applying for the First Home Owner Rate of Duty and the First Home Buyer Duty Concession is a straightforward process. When you purchase a property, your conveyancer or settlement agent will usually help with the paperwork to claim the concessions. You will need to provide documentation proving you meet the eligibility criteria, such as proof of your first home buyer status and your intended occupancy of the property.
Ready to start your home buying journey?
If you're a first time homebuyer, now is a great time to explore your options, and the updated stamp duty concessions make it easier to take that exciting step into homeownership!
To make the most of these concessions, start by exploring our WA land estates and locations that match your lifestyle and needs.
BROWSE LAND ESTATES
