Home News First homebuyers rush in

First homebuyers rush in

Font size :
Nila Sweeney
First it was Queenslanders who were slugged with higher stamp duty rates in August – now it’s NSW first homebuyers who are rushing to buy before new, higher stamp duty levies kick in on January 1.
 
From new year’s day 2012, first homebuyers in NSW will be forced to stump up thousands of extra dollars in stamp duty, prompting a rush of buyers to flood the market.
 
Currently, first homebuyers don’t pay any stamp duty on home purchases below $500,000 under the First Home Plus Scheme, while homes valued between $500,000 and $600,000 receive a concession. This equates to a saving of up to $17,990.
 
From January 1, the First Home Plus Scheme is being shelved and replaced by the First Home - New Home Scheme. Under this program, stamp duty concessions will only be available to first homebuyers who purchase a brand new home or vacant land intended to be used as the site for a first home.
 
This means buyers of established properties will no longer receive the stamp duty exemption or concession.
 
Since the news was announced a few weeks ago, mortgage broker Loan Market says 60 per cent of its brokers in NSW have reported a spike in the number of pre-approved customers finding properties.
 
“The increase in activity around pre-approvals is a clear indication that parts of the NSW property market are due for increased competition,” says Dean Rushton, Loan Market Chief Operating Officer.
 
“What we’re starting to see in the NSW market right now is a similar scenario to the end of 2009, when the government withdrew the increased First Home Owners Grant. Market demand has been pulled forward and buyers are accelerating their purchasing plans. Pre-approved customers are acting more decisively in response to the removal of a government concession that can save thousands of dollars.”
 
Meanwhile in Queensland, the property market was delivered a blow in the form of a stamp duty increase in August, when the state government lifted the concession on owner-occupier purchases.
 
Before the increase, stamp duty in Queensland on a $500,000 existing home for a principal place of residence was $8,750. As of 1 August, stamp duty on this same purchase increased to $15,525.
 
Along with the rest of the state, REIQ chairman Pamela Bennett was not impressed, particularly as the Queensland market has already taken a huge hit in the wake of recent natural disasters.
 
“The removal of the stamp duty concession for non-first home buyers wreaks havoc on the Queensland property market,” she says.
 
In exchange for the stamp duty cuts, the state government has offered a $10,000 one-off grant for anyone buying or building a new home, but Bennett isn’t convinced.
 
“I believe a better way to stimulate the economy would have been to provide financial incentives for all buyers of all types of properties – which in turn would have increased activity and therefore helped the government’s bottom line,” she says.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers

Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

More mortgage news and articles

Sponsored Links

Monday, Jul 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords