NSW to scrap first home buyer concessions for existing homes

The NSW government will limit full stamp duty concessions to those buying new homes from January 1, 2012.

It is said that around 80% of first-home buyers purchase an established property and next year they will no longer have their stamp duty fully subsidised by the state government unless they buy newly constructed homes.

The shock measure was unveiled by Treasurer Mike Baird in the Coalition’s first budget last week. He is clearly keen to stimulate the struggling construction sector.

“We recognise this is a difficult decision, but we believe it is necessary to make buying a new house relatively more attractive than buying an existing dwelling for first-home buyers,” Baird says.

“The government has therefore decided that from 1 January next year, while all eligible first home buyers will continue to receive the $7,000 first-home owner’s grant, eligibility for additional stamp duty concessions will be limited to those purchasing newly constructed homes, including ‘off the plan’,” the Treasurer says.

“We will continue to closely monitor housing sector conditions and will work closely with the sector to develop further options to encourage growth.”

With first homebuyers re entering the markets I see a spike of purchases in the sub $500,000 bracket over the next few months as some first-home buyers stand to lose up to $17,990 if they buy an established property next year.

First-home benefits of up to $24,990 are currently available, including the $7,000 First Home Owner Grant and a duty exemption of up to $17,990 under the First Home Plus Scheme.

The $7,000 first-home buyer grant will continue to be available to all eligible first-home buyers.


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