Median Price Sydney investment property to cost $80,137 in stamp duty!
NSW Treasurer Gladys Berejiklian says a stamp duty and land tax surcharge for foreign property investors will not hurt the local market Photo: Louie Douvis
A Median Price Sydney investment property to cost investors $80,137 in stamp duty after NSW June 21st budget. That’s around $40,000 more than you might expect to pay for the same property today….. and once you have purchased your new Sydney investment property, expect to pay an extra 0.75 per cent land tax from 2017. The stamp duty surcharge will apply from the June 21 state budget, while the land tax surcharge will take effect from January 1, 2017.
Don’t Panic! This will only apply to foreign buyers of investment properties and will not apply to will not apply to Australian citizens, permanent residents of Australia or New Zealanders who have stayed in Australia at least 200 days in the last 12 months.
NSW Treasurer Gladys Berejiklian has announced that the NSW Budget 2016 has announced that Foreign property buyers in NSW will be hit with stamp duty and land tax hikes brining the State more line with the new rules in Victoria.
Based on a Sydney median house price of $995,804, the stamp duty bill for a foreign investor will increase by almost $40,000 – from $40,305 to $80,137. A Sydney median price investment property unit at $656,000 will cost an additional $26,240 in stamp duty.
Tim Pallas, the Victorian State Treasurer, increased its existing stamp duty surcharge from 3 per cent to 7 per cent and a land tax surcharge for “absentee owners” from 0.5 per cent to 1.5 per cent.
The NSW stamp duty and land tax measures are expected to raise $1 billion for the government over the next four years as the new measures are not expected to deter foreign investors. The measures are introduced with the expectation that they will improve housing affordability but it has already been shown in Victoria that the even higher increases have done little to deter foreign buyers so it is unlikely the measures will have an effect on affordability.
Read more: http://goo.gl/iaMVW3
