First homebuyers Ellouise Dunn and Robert Cacciola got government support to buy a unit. Picture: Brett Costello
First homebuyers are being urged to capitalise on a raft of government grants and support after further stamp duty incentives were introduced earlier this week.
The NSW government announced Monday that stamp duty will be temporarily scrapped for first homebuyers purchasing newly-built properties worth up to $800,000.
Stamp duty will also be heavily discounted for new homes priced up to $1 million for a period of 12 months.
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The scheme will mean first-time buyers have multiple avenues of support. First-time purchasers of new properties are already entitled to the $10,000 First Home Owners Grant.
The $25,000 HomeBuilder scheme for purchases of new properties priced under $750,000 is also available for single buyers with an income under $125,000 or couples earning less than $200,000 a year.
With stamp duty costs on property purchases often exceeding $15,000, first homebuyers could save as much as $40,000 on their purchases if they access multiple grants.
There is also the federally-backed First Home Loan Deposit Scheme, which allows buyers to get into the market using a 5 per cent deposit without needing to get pricey lender’s mortgage insurance.
Housing Industry Association executive director NSW David Bare said the combined packages offer a significant boost for buyers.
“The government is forecasting that this change will assist more than 6000 first homebuyers, which have traditionally been under-represented in the NSW market, particularly in Sydney,” Mr Bare said.
“Combined with the existing $10,000 First Home Owners Grant and the $25,000 HomeBuilder grant, first homebuyers in NSW should be looking to a new home as a real option.”
Premier Gladys Berejiklian said stamp duty incentives would help more first-time buyers get into the market. Picture: Jeremy Piper
The year-long stamp duty initiative was introduced with the aim of propping up the construction sector and injecting confidence into the property market.
NSW Premier Gladys Berejiklian said the changes will deliver a direct financial benefit to home seekers.
“Thousands of people will see their bank balances benefit from this change – it will help get more keys into more front doors of more new homes,” Ms Berejiklian said.
Commencing today, the stamp duty scheme will also raise the threshold for tax exceptions on vacant land purchases from $350,000 to $400,000. Discounts will also apply for land purchases up to $500,000.
First-time buyers Ellouise Dunn and Robert Cacciola recently accessed the First Home Deposit Scheme and said they realised it was a good time to be purchasing.
Buyers of newly built houses can get multiple avenues of support. Picture: Jonathan Ng
The pair snapped up a two-bedroom unit in the suburb of Sutherland in Sydney’s south and said they were “extremely happy” with the property and the deal they managed to negotiate.
“We didn’t think we would get (the scheme) but decided to apply for it anyway,” Ms Dunn said.
“When we got it we had 90 days to buy something, so that motivated us to start looking but we have no regrets. We felt like it was a good time to be looking and rates are so low.”
Belle Property Annandale associate director Simone Azzi said the stamp duty scheme was a welcome boost for the property market.
“(It) could be the difference between buying a house instead of an apartment,” she said.
Ellouise Dunn and Robert Cacciola said it was a good time to buy. Picture: Brett Costello
The government hopes easing the burden of buying a newly built property will stimulate the construction sector, which employs around 376,000 workers in NSW.
Residential and commercial construction contributed $48 billion to the state’s economy in 2018-19.
“This initiative will have positive outcomes for the housing industry and the NSW economy as a whole,” Mr Bare said. “(It) will ensure that there is plenty of suitably priced new housing for first homebuyers to take advantage of right across the state.”
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