Time is running out for NSW First Home Buyers: stamp duty concessions to be scrapped at the end of the year
Thursday, 3 November 2011
First Home Buyers (FHBs) may find that property purchases within their reach could be up to $17,990 more expensive on January 1 following the NSW State Government’s decision to scrap stamp duty concessions.
According to Aussie’s Founder and Executive Chairman Mr John Symond, a combination of price inflation over the last 10 years and a lack of new housing have combined to make the goal of home ownership completely out of reach,” he said.
“FHB’s no longer have a chance to buy a house in more than 100 suburbs across Sydney, which now have a median price above $1 million.”
He said many potentially face a lifetime of living in apartments, however that window of opportunity is quickly diminishing as their prices continue to rise as well.
“The scrapping of the concessions will mean many FHB’s maybe priced out of the market,” he said. “Those FHBs who have been counting on the concessions and may have only just scraped enough together, might find themselves unable to purchase come January 1.”
For example, a FHB who is looking to buy a property worth $500,000 may now be looking at a purchase worth $517,990, as the stamp duty post Jan 1 will be $17,990.
Mr Symond said: “It’s not too late to act. I would encourage all FHBs ready to buy to speak to an Aussie broker today as they are dealing with the major lenders on a daily basis, and can analyse hundreds of loans quickly.”
In NSW, FHB’s currently receive an exemption from paying stamp duty for property purchases under $500,000, with graduated discounts between $500,000 and $600,000.
Following the NSW Government’s decision in September, from January 1 next year, the stamp duty concessions will apply only to new homes, including those built off the plan.
FHBs must have exchanged signed contracts before December 31, 2011 to be eligible for the stamp duty exemption.
According to the Australian Bureau of Statistics, the average weekly earnings for a full-time adult worker are around $53,000 per year. Based on saving 20 per cent of pre-tax earnings, a couple earning this amount would have to save for approximately 5.5 years to save a 20 per cent deposit on a purchase of $500,000 ($100,000 + 17,990 stamp duty).
With the stamp duty exemption on offer ($17,990 waived), the same couple would only have had to save for 4.7 years for the 20 per cent deposit.
An Aussie broker will ensure the FHB is on an appropriate product for their circumstances and is supported throughout the application, lodgement and settlement process and can assist with the FHB’s grant paperwork.
“Buying your first home can be a very nerve-wracking and confusing experience, so it pays to have an Aussie broker helping you through the entire process at no cost,” he said.
As one of the country’s largest non-bank providers of financial services, Aussie has a loan book of over $41 billion, with more than 700 brokers across the country.
An Aussie broker will offer guidance, assess eligibility, lodge the application and then support the first home buyer borrower through the home loan process. Aussie brokers are available seven days a week in your home or at one of our 140+ stores at the request of customers who call Aussie on 13 13 33.
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For further information please call:
Brooke Stoddart
Aussie
(02) 8297 0381
Tim Allerton
City PR
(02) 9267 4511 or (0412) 715 707