NSW first-home buyers 'need support this Xmas'

By the resi financial blog team, 26 November 2013

NSW first-home buyers

The NSW government should give people searching for their first home loan in the state an early Christmas present by reforming current incentives.

This is according to the Real Estate Institute of New South Wales (REINSW), which said amendments to the existing First Home Owners Grant could encourage more activity in the market.

Under the existing legislation, which was brought in last year, $15,000 is available to people who want to purchase a new property in the state, although existing houses and apartments are exempt.

The previous first-home buyer incentive provided a $7,000 grant for all properties, with the REINSW claiming the new system is not having the desired effect.

"With less than five weeks until Christmas, the state government should be ensuring that those looking to purchase their first property are being given the support they need," said the organisation's president, Christian Payne.

"The NSW government must act now, before Christmas, to reintroduce incentives for first-home buyers. If they do not act quickly enough we will lose our best young people to other states."

Mr Payne said the festive season is a time when families get together and major life decisions and changes can be made.

He claimed rising house prices and increased turnover has led to sky-high stamp duty revenues and a budget surplus, meaning there is a sufficient amount of funding to be allocated to the first-home buyer market.

Buying your first home in Sydney

Record low interest rates in Australia means there may never have been a better time for first-home buyers to take the plunge.

Whether you are looking for 3-year fixed mortgage rates or the best variable mortgage rates, there are plenty of options available for people looking to enter the market.

So what incentives are available for those buying their first home in Sydney? Well, as mentioned above, the First Home Owners Grant provides access to $15,000 for the purchase of a new property.

New properties include off the plan homes, substantially renovated dwellings and any property that has not been previously lived in or sold as a residence.

To be eligible, you must live in the property for a continuous period of six months and the value of the dwelling cannot exceed $650,000.

There are also stamp duty exemptions available for properties up to $550,000, which came into force as part of the First Home - New Home scheme on January 1 last year, as well as concessions on stamp duty for homes valued at between $550,000 and $650,000.

Individuals looking to buy vacant land on which to build a home will pay no duty on deals worth up to $350,000, with discounts available on land worth between $350,000 and $450,000.

Categories: Home Loans