Login
ISCOVER
Jessica Darnbrough
In a major blow for potential property owners, the NSW Government has scrapped stamp duty concessions for 80 per cent of all first time buyers.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
In his first state budget yesterday, premier Barry O’Farrell said from 1 January first home buyers will no longer be able to avoid having to pay transfer title charges on existing homes under $600,000.
Stamp duty exemptions will now be restricted to newly built and off the plan properties only.
Mr O’Farrell’s decision to axe certain stamp duty concessions was slammed by various real estate commentators, including the Real Estate Institute of NSW president Wayne Stewart, who said the dream of home ownership was now “simply unachievable” for many.
“This is really disappointing news for families, essential workers and all those trying to buy their first home,” Mr Stewart said.
“Unfortunately for some, the dream of homeownership will now become simply unachievable.
“And in the broader context when the storm clouds are gathering over the global economic outlook, today’s decision is troubling.
“Australia weathered the last global financial crisis because the property market was invigorated yet those lessons have been ignored today.
“REINSW believes that the budget initiatives announced today will unfortunately worsen the housing affordability and housing availability crisis gripping the state and hurting first home buyers.”
While Mr Stewart welcomed Mr O’Farrell’s decision to release an additional 10,000 land sites, he said the plan would have little impact as most of the site would be well beyond the reach of first home buyers.
“REINSW is not seeing anything in the Budget which goes to the heart of the housing affordability and availability crisis,” he said.
“It is unfortunate that the decision to cut first home buyers stamp duty concessions on existing properties will only serve to increase house prices and further erode housing affordability.
“It is inevitable that as first home buyers scramble to beat the 1 January deadline, we will see prices increase as demand exceeds supply.”
