First home buyers will be helped into the property market with more than $1 billion of stamp duty concessions and measures to level the playing field with investors under reforms unveiled by Premier Gladys Berejiklian to tackle housing affordability.
“It is about getting people into the market. That is what we are solving for today,” Ms Berejiklian said.
But the NSW government is being criticised for an absence of measures to boost the construction of affordable housing for low and medium-income workers such as nurses, teachers and police.
Under the package, first home buyers of existing and new properties costing up to $650,000 will be exempt from paying stamp duty from July 1.
This lifts the value of eligible properties from the existing $550,000 and reintroduces existing homes to the scheme.
Buyers of first homes worth between $650,000 and $800,000 will receive stamp duty discounts.
The changes to stamp duty concessions are estimated to deliver savings of up to $24,740 for a first home buyer in NSW.
“It is about getting people into the market. That is what we are solving for today,”
As well, the 9 per cent stamp duty charged on lenders' mortgage insurance will be abolished.
However, Ms Berejiklian announced tighter eligibility criteria for the existing $10,000 first home owner grant.
While the grant will remain available, the eligibility cap for those buying a new home drops to $600,000.
It is expected this change will drive land sales.
There is also potential for house prices to become heightened as a result of the stamp duty being axed.
Across the Mid North Coast, there is huge demand for houses which are priced around the $450,000 to $500,000 mark.
Three and four bedroom family homes are selling quickly, and are often being bought by investors sight unseen.
This drive will see a younger demographic come back into the market.
It is expected that first home buyers will help to drive the market from the bottom end upwards.
This is being seen as a postive move to help first time buyers onto the first rung of the property ladder.