Newly revamped grant sees first homebuyers accessing a grant of $25,000
Recently outlined by the New South Wales Treasury, first home buyers will be able to access a grant of $25,000 to assist them with purchasing a property.
As part of the NSW property tax proposal paper, the initiative will be seeing existing stamp duty concessions being replaced with these grants.
To improve the overall affordability and accessibility of homeownership. NSW Treasurer, Dominic Perrottet said, “We are proposing a once in a generation reform to make homeownership more affordable and achievable from across all segments of the community”.
Currently, NSW offers a first home buyer stamp duty grant on properties costing up to $650,000 and partial concessions on purchase up to $800,000.
Current status of the NSW property market
According to the National Housing Finance and Investment Corporation, housing affordability was worst off for first home buyers in Sydney.
About less than 20% of properties within Sydney are classified as affordable.
Ownership rates continue to drop dramatically among the age range of 25 – 44 years olds within NSW. Hopefully, the reformed plan from the NSW government will improve the overall situation.
What does this hold for property prices in the future?
During May 2021, Sydney property prices rose 3% May, with median house values being more than $1.1 million as reported by CoreLogic.
The proposal submitted by Mckell Institute highlighted that there may be a further spike in property values.
The paper found housing prices maybe 4% cheaper if stamp duty was axed resulting in first home buyers being able to purchase a home two and half years earlier.
It was noted by the Australian Banking Association that the new proposal, will respectively provide first home buyers with an easier means to achieve their goals of homeownership. By removing the upfront costs at the time of purchasing a property, will ease up the restrictions placed on buyers from entering the market.
Need help finding a home loan?
Whether you’re on the hunt for your first property or next investment property. Abacus Finance can help to match your needs with our competitive rates available from numerous lenders in the marketplace.
The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.
