First Home Buyers Choice examples
Eligible first home buyers can pay a smaller annual property tax rather than the upfront stamp duty. Read scenarios of how First Home Buyer Choice can work.
Jessica and Matthew
- Jessica and Matthew are buying their first home, a $650,000 house in Mudgee, with a land value of $340,000.
- Ordinarily, stamp duty on a $650,000 home would be $24,340, but because Jessica and Matthew are first home buyers, they are exempt from stamp duty and therefore do not choose the property tax.
- In 2022-2023, the annual property tax on the house would be $1420.
Aisha
- Aisha is buying her first home, a $750,000 apartment in Concord. The apartment has a land value of $270,000.
- As an eligible first home buyer, Aisha qualifies for a concessional rate of stamp duty which in this case results in stamp duty of $20,727.
- In 2022-2023, the annual property tax on the apartment would be $1210.
- Aisha is hoping to upgrade to a larger home in about five years, and thinks she will end up paying less tax under the property tax option.
- She chooses the property tax.
Ranit
- Ranit is buying his first home, a $1.2 million townhouse in Newcastle. The land value of this property is $720,000.
- Stamp duty on this purchase is $50,200, and the purchase price is above the threshold for any first home buyer stamp duty concessions.
- In 2022-2023, property tax on the property would be $2560.
- Ranit is not sure how long he will own the property, but he has heard that half of all owner-occupiers sell their property within about ten years.
- Not having to pay stamp duty would really help to lower the up-front costs of the purchase, so Ranit chooses the property tax.