First home buyers will be able to pay stamp duty on property purchases in monthly installments over five years if New South Wale’s Labor Party wins the next election.
The Urban Development Institute (UDIA) of NSW has welcomed the policy, which will be open to more than 37,000 first home buyers each year purchasing new and established properties worth up to $750,000.
Stamp duty is a tax charged by the government on the sale of a property and is one of the largest upfront costs when purchasing a home. Currently, the NSW Government only offers stamp duty concessions for first home buyers purchasing new homes.
“A real issue for first home buyers is getting the deposit together so the Help for Homes policy will definitely go a way towards addressing that,” said UDIA NSW Chief Executive Stephen Albin.
Mr Albin said there was a slump in the number of first home buyers entering the market and the policy was a “clear and measured” approach to addressing the issue.
He said the policy was not a “cure-all”, however, and further action was needed to boost housing supply and make housing more affordable. This included allowing small-lot housing - building homes on lots of 225sqm or less - in non-growth areas.
“Small lot housing has proven ideal for first home buyers looking to get into the Sydney market at around $400,000, and it has been equally as popular with empty nesters looking for less yard to maintain.”
Mr Albin said both parties should speed up housing approvals by offering bi-partisan support to a new planning system that removed duplications and delays.
They should also review property taxes, which currently accounted for up to 30 per cent of the price a newly constructed home, and resulted in higher prices.
“New South Wales is the most uncompetitive and highly taxed state in the nation when it comes to property and our housing prices reflect that,” Mr Albin said.
