NSW First Home Buyer Choice Scheme: What does it mean for first-home buyers?

Tax breaks and our home and land packages can make your dreams of home ownership a reality

Do you ever feel like you’re doomed to rent or live with your parents (or in-laws) forever?

At Park Hill Property, we get it.

Buying a home seems to get more and more out of reach for first-home buyers every day.

Between deposits, rent, progress payments, and stamp duty costs, it all gets insanely expensive, right?

  • How do you save up for a hefty deposit while paying rent?
  • How do you save up for the double whammy of a deposit and stamp duty?
  • How do you pay for rent and a mortgage at the same time?
  • How do you get the banks to give you credit for a home loan while renting?

Thankfully, the Government’s new First Home Buyer Choice is a real win for eligible first-home buyers.

These kinds of government schemes can sound complicated and scary.

You’re probably envisioning loads of red tape and ridiculously detailed application forms.
But we’re here to break it down for you without all the jargon.

And once you understand how it works, you can make concrete plans to achieve the great Australian dream – buying a home to call your own.

What’s the NSW First Home Buyer Choice Scheme?

Put simply, this scheme gives first-home buyers a choice.

They can pay for stamp duty upfront, or they can pay a much more affordable land tax once a year.

What’s stamp duty?

If you’ve never owned your own home, you might not be familiar with the term “stamp duty”.
There’s a lot of terminology for first homeowners to get their heads around.

So, what is it?

Stamp duty (otherwise known as land transfer duty or just transfer duty) is a tax the State Revenue Office charges you when you buy a property.

It doesn’t matter if you only buy land or an established home. You still have to pay for it.

And it’s not a small amount of money.

Most people will pay tens of thousands of dollars in stamp duty when they buy a property.
And that’s why it can be a massive barrier to getting a foot on the real estate market for new home buyers.

Exactly how much stamp duty do you have to pay?

The exact amount charged depends on:

  • whether you are buying the home to live in (i.e. will it be your principal place of residence)
  • whether you’re buying the house as an investment property
  • how much the property cost
  • whether you’re buying vacant land, a new home, or an established home
  • whether the Government classifies you as a foreign buyer
  • whether you’re a first home-buyer

Hasn’t there been a stamp-duty scheme for first-home buyers before?

Yes, there has. There have been several home buyers grants for first-home buyers trying to buy a residential property over the years.

The one you’re thinking about is called the First Home Buyers’ Assistance Scheme.

Under this scheme, you can be let off the hook from paying any stamp duty under certain circumstances.

To be eligible for a stamp duty exemption, you must be buying:

  • vacant land valued at less than $400,000
  • a new home for less than $800,000
  • an established house for less than $650,000

If you’re in Sydney or even regional NSW, buying a property below these values is easier said than done.

First-home buyers who purchase properties above these limits can apply for a stamp duty reduction. But again, these concessions only apply to properties that are on the cheap side and hard to find.

If you can find a property that meets these conditions, stamp duty concessions and exemptions are still available.

How is the First Home Buyers Choice Scheme different?

This scheme applies to first-home buyers buying a property to the value of $1.5 million.

Sounds more in the realms of possibility, doesn’t it?

Unfortunately, it doesn’t mean you don’t have to pay anything.

But it does mean you need a lot less money upfront to buy a home.


As outlined above, you can choose not to pay stamp duty straight away and pay a yearly tax instead.

How much will I have to pay?

This depends on how much your land is worth. It also depends on whether you’re buying the house to live in or to rent out as an investment.

Read that again.

Did you catch the difference between this and current stamp duty costs?

You only pay an amount based on the land value of your property, not the value of the home and land. This makes it more affordable.

You can find the details about your eligibility and how much you’ll need to pay on the NSW Government website. They even have a handy calculator that will help you to figure out exactly how much you’ll pay.

How can Park Hill Property Help?

Hill Property has home and land packages designed to meet the Government’s eligibility criteria for this scheme.

You don’t have to scour the real estate sites trying to find a property that allows you to pay way less upfront.

And in today’s market, buying a block of land and signing a contract for a new home build isn’t as easy as it sounds.

Due to all the material and labour shortages, most builders aren’t offering fixed-cost building contracts. They’re including clauses that allow them to increase the contract price if they experience cost increases.

So, the house and land you went to buy can easily creep over the required $1.5 million mark.

Can you trust Park Hill Property?

Unfortunately, cost increases have seen a lot of builders and developers, particularly smaller ones, go out of business.

At Park Hill Property, our finances are rock solid.

You don’t have to worry about whether we’ll still be around to finish your home.

You can rest easy knowing your build is in good hands.

Park Hill Property makes it easy

We talked earlier about how hard it is to pay rent and a mortgage simultaneously.

You don’t have to stretch yourself financially at Park Hill Property.

When you purchase a Complete Living Series package, we only require a 5% deposit for your house and land package. You won’t have to pay a cent more until the home is completed.

We’ve got standard floorplans and massive amounts of land waiting for you.
In fact, some of those homes are already under construction. Your new home might already be being built right now, which reduces wait times for you.

We have some beautiful design and colour schemes that you can choose from. Interior experts have put them together, so you have the confidence of knowing they’ll look incredible. And you don’t have the stress of making a thousand choices.

And you will deal with one person from your first meeting until your beautiful new home is built. You won’t get passed from one person to another. Your point of contact will have detailed knowledge about everything happening with your build.

Stop dreaming

Between government schemes and initiatives, combined with smart, tailor-made housing packages, being a first homeowner doesn’t have to be a dream.

You don’t have to deal with nasty landlords and rent increases.

You don’t have to share a bedroom wall with your parents or in-laws.

You can have privacy, and you can decide what the rules are.

You can have a home to call your own.

What are you waiting for?

You have to make the first move.

And it’s super simple.

Just get in touch with Park Hill Property and let us make the journey of home-ownership smooth sailing.

Contact Park Hill Property today