STAMP DUTY STAMPEDE
Industry experts are predicting a surge in property sales as first home buyers rush to enter the market after the NSW government announced stamp duty concessions would be cut from January.
First-time buyers of an existing unit or house will no longer be eligible for discounts on stamp duty that can be as high as $18,000, from January 2012.
Sanders Property Agents director Peter Geraghty said the budget announcement was a factor in last weekend’s unusually high clearance rates. “It’s a factor but it’s coupled with traditionally lower stock for this time of year and the tenth consecutive stable interest rate announced last week.” He said a lot of vendors were holding out for the school holidays which accounted for a delay in new stock on the market.
Mr Geraghty said first home buyers would continue to be prominent. “From now until January, you’ll see a surge of first home buyers buying both old and new properties,” he said. “There’s still going to be great incentives for first home buyers post January because we’re seeing some three year fixed rates through the major lenders below the standard variable rate.”
Today first-home buyers of new and existing homes priced under $500,000 do not have to pay the $18,010 stamp duty. There are also concessions for all properties priced up to $600,000 on a sliding scale.
Therefore, a home purchased for $550,000 has reduced stamp duties of $11,245 from the full rate of $20,260.
A spokesperson at the Office of State Revenue (OSR) said next year first-home buyers of new homes priced under $600,000 must apply for stamp duty concessions within three months of the purchase date. They will receive a 25 per cent discount as long as construction has begun and the property has never been occupied or sold. First-time buyers of off-the-plan properties have 15 months to apply for the concession.
