According to The Australian Financial Review, under the NSW government scheme, which kicked off on January 16, first home buyers of properties under $1.5 million can opt into paying a smaller annual land tax instead of stamp duty.
The scheme is limited to properties worth $1.5 million or less, which the government said would cover 97 per cent of first home buyers.
For homes worth $1.5 million, first-home buyers can save $66,700 in stamp duty if they opt to pay $3100 in annual land tax for as long as they own the property.
Sydney home buyer Leighton Aurelius quickly realised the segment of the market he was targeting – homes worth up to $1.5 million – was so competitive that properties were getting snapped up at auctions even before he had a chance to bid.
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