Login
ISCOVER
Jessica Darnbrough
Brokers that deal with the first home buyer market could see their loan volumes drop significantly under the NSW government’s proposed changes to stamp duty concessions.
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.
Speaking to The Adviser, Paradime Home Finance’s Ian Jervis said the government’s decision to scrap stamp duty concessions for first home buyers could see his business volumes drop by as much as 10 per cent.
Under the proposed changes, first home buyers will no longer be able to avoid having to pay transfer title charges on existing homes under $600,000 from 1 January 2012.
Stamp duty exemptions will now be restricted to newly built and off the plan properties only.
“I don’t write that much first home buyer business at the moment, but that said, I expect to write even less after the stamp duty changes are officially implemented,” Mr Jervis said.
“First home buyers in my local Wollongong area will be impacted by the changes. But, if the changes do prompt home owners to buy new homes, then this will be a good outcome over the long term.”
Australian Property Monitors Andrew Wilson agreed and said the changes would switch the focus from established dwellings to new homes over the medium term.
“The government wants people to look at new properties and these changes will help this happen over the longer term. However, in the short term, first home buyers are definitely going to be worse off in the market place. They will have less capacity to buy a home, because they will be down approximately $18,000,” Mr Wilson said.
