News & Media

September 08, 2011

FIRST HOME BUYERS SHOULD ACT NOW

“If you know someone who is a first home buyer who is looking to purchase in the next 12 months they need to act now.

The NSW State Government announced on the 6th of September, that they will be scrapping the transfer duty rebate for all first home buyers on established properties from 1st January 2012.  

This does not include new properties. The aim of this policy change is to stimulate new properties and the construction of new properties.  Many in the industry will welcome this change as some believe that the first home buyers have not been putting down enough of a deposit towards their first home.  I don’t agree with this, as the first home is the hardest to purchase, buyers have no equity, and typically have to pay rent while they save. This means that obtaining an extra $15,000 can take quite a while to save.  Acting now could mean the difference between affording a property they have had their eye on and missing out till they save a larger amount.

So in real terms what will this cost a First Home Buyer purchasing and established (not new) property after 1st January 2012

Purchase Price of $350,000 today will pay No Transfer Stamp Duty but on 01/01/2012 will pay $11,240

Purchase Price of $400,000 today will pay No Transfer Stamp Duty but on 01/01/2012 will pay $13,490

Purchase Price of $450,000 today will pay No Transfer Stamp Duty but on 01/01/2012 will pay $15,470

Purchase Price of $500,000 today will pay No Transfer Stamp Duty but on 01/01/2012 will pay $17,990

If you know a First Home Buyer who is looking or thinking of purchasing in the next 12 months invite them to call me on the mobile below so I can discuss their options with them.”