In the last budget changes were announced for a number of measures designed at assisting NSW first home buyers (FHB) to get into the increasingly unaffordable housing market. Particularly for Sydney buyers, these should prove helpful in being able to potentially get a foot on the housing ladder a little easier. Come July 1 2017 first home buyers no longer have to pay stamp duty on established dwellings up to $650,000 with a sliding scale of relief up to a purchase of $800,000. Those building new homes continue to also benefit, with an added bonus of a $10,000 grant for new builds up to $750,000 and a $10,000 grant for those buying new property up to $600,000. Along with the removal of insurance duty on lenders mortgage insurance, it serves as an incentive and we anticipate it will stimulate the market in these lower price points. Further information and the finer details can be found summarised on the NSW govt website here
As buyers’ agents we expect to see an increase in FHB numbers as a result of these changes, but caution still remains key, particularly as FHB buyers can be seen as an easy target by those selling agents who know how to effectively sell and create urgency around property transactions. Inexperience can be costly in any market, but especially so when dealing with the emotion of buying one’s first home. We have seen many first home buyers make potentially costly mistakes due to these factors, and fall into the trap of overpaying when there was no necessity to do so. This can range from ill-conceived and unnecessary over-bidding at auction through to rushed decisions being made without thorough due diligence conducted on property. It’s a jungle out there so take care if you’re in the market for the first time.