Greg, we are keen to downsize from our existing 4-bedroom home, but being pensioners, we are put off by the fact that so much money will be eaten up by stamp duty on the next property we purchase.
Do pensioners get any stamp duty relief, and approximately how much would we be up for on a property around $400,000?
A. The stamp duty payable in NSW on a $400,000 property purchase would be $13,490.
Yes, it is a significant amount, and at present pensioners and seniors are not offered any specific discounts or exemptions by the NSW State Government.
This is a real pity for people like yourselves, when clearly the move to a smaller, more manageable home is a good idea for so many reasons.
Some stamp duty relief is available under the terms of the NSW New Home Grant Scheme, which was introduced in 2012 to stimulate the construction of new homes.
This scheme offers grants of $5,000 for people (of all ages) towards the purchase of new homes, homes off the plan and vacant land on which a new home will be built.
The $5,000 is applied as a credit against the total stamp duty payable.
If this type of property appeals, there are plenty of opportunities for you to purchase locally within your target price and to benefit from this scheme.
Just make sure you focus on achieving what you set out to do in the first place.
Don’t let your choice be all about the $5,000 grant, without considering why the idea of downsizing appeals and what lifestyle changes you might need and enjoy in the years to come.
To get all the facts about the grant visit www.osr.nsw.gov.au or call me anytime – I am happy to share information on suitable properties, as well the best guidance I can offer.
Answers are general comment, and readers should always seek their own independent professional advice.
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Greg Trembath is Principal/Licensee at
Greg Trembath Real Estate.
Licensed Real Estate Agent – Licensed Auctioneer.