17 Oct 2011
Last month the NSW Government announced that it will be getting rid of stamp duty exemptions for first home buyers purchasing established homes as of January 1, 2012.
While this has come as disappointing news for a lot of first home buyers, those who can afford to make the investment now have been on the hunt for properties so they can take advantage of the stamp duty savings while they still can.
In just one day after the announcement of the stamp duty cuts, $140.5 million worth of Sydney property was reportedly sold, and auction clearance rates jumped to 60 per cent after performing at around 50 per cent for the past couple of months.
With a discount of up to $17,990 to be made on properties worth up to $500,000 it’s not hard to see why first home buyers are rushing to grab a property while they can take advantage of the savings.
But it’s not only buyers who should be thinking about getting into the market at this time, sellers with properties worth up to $500,000 or even above should be thinking about taking advantage of the increased buyer activity. With the re-emergence of first home buyers coupled with spring and steady interest rates, there are definitely more property enquiries and reported open house attendances, which generally means things are picking up.
There will no doubt be a slow down in buyer activity when the stamp duty cuts come into effect on January 1, but first home buyers need to remember that they will still be able to take advantage of the stamp duty exemptions for the purchase of new dwellings and they may also be eligible for the $7,000 first home buyers grant. So even though there are significant savings to be made now, there will still be plenty of incentives for first home buyers after the New Year.
If you or someone you know is interested in taking advantage of the stamp duty savings on established homes and would like to purchase a property by the end of this year, then I would be happy to show you the properties that are currently on the market or alternatively get an idea what your property is worth in the current market, please feel free to give me a call on 9731-6204 for a quick over the phone valuation.