Which state is the best for first home buyers?

With the recent budget announcements and changes throughout the country, where exactly is the best state to buy a property as a first home buyer today? We take a closer look at the eastern seaboard states: New South Wales, Victoria and Queensland.

State by State Comparison for First Home Buyers
  NSW VIC QLD
Median Dwelling Price $872,300 $665,000 $490,000
Stamp Duty

0 up to $650,000 and reductions for $650,000 to $800,000 properties

0 up to $600,000 and cuts up to $750,000 0 up tp $500,000 and concessions up to $549,000
First Home Owner Grant $10,000 $10,000 in Melbourne and $20,000 for Regional Melbourne $20,000 until 31 Dec 2017

New South Wales

Currently, NSW is the most expensive state to buy property in, particularly in Sydney, but the capital city does continue to have a strong economy and population growth.

Median Dwelling Price Most Expensive

The median dwelling price in Sydney according to CoreLogic now sits at $872,300 at 31 May 2017. However, in order to make property more appealing and far more affordable, the Government from 1 July 2017 is introducing the housing affordability package to try and help first home buyers enter the property market sooner.

The housing affordability package mainly includes stamp duty savings and a $10,000 grant towards those who build a house, where the total value of the house and land does not exceed $750,000.

Stamp Duty Savings

From 1 July 2017, first home buyers purchasing a property under $650,000 will no longer have to pay any stamp duty. For properties valued at $650,000 to $800,000, there will be a reduction in stamp duty costs and savings will apply to both new and existing properties.

For example: A property that costs $600,000 would mean a saving of $12,370 in stamp duty from 1 July 2017 for first home buyers.

First Home Owner Grant

First home buyers who purchase or build a home costing less than $750,000 can take advantage of the First Home Owner Grant of $10,000.

Victoria

Perhaps Victoria is the best state to purchase property as a first home buyer as there are a number of great incentives to take advantage of from 1 July including stamp duty savings, the first home owner grant and HomesVic Shared Equity Scheme. Plus, properties are cheaper here when compared to Sydney prices.

Median Dwelling Price

Firstly, the median dwelling price in Victoria is much more affordable when compared to New South Wales. The median dwelling price in Melbourne sits at $665,000 according to CoreLogic 31 May 2017 results, compared to Sydney’s $872,300.

Stamp Duty

From 1 July 2017, stamp duty for first home buyers will be abolished on homes valued up to $600,000 (a saving of up to $31,000), whilst properties valued up to $750,000 will receive cuts to stamp duty as well.

First Home Owner Grant Doubles

There’s great news for first home buyers in Victoria, especially those who purchase within regional Victoria as the First Home Owner Grant will double from $10,000 to $20,000. This is expected to help support up to 6,000 first home buyers, making it much easier for younger people in regional Victoria to buy within their local community. This grant is available for new homes valued up to $750,000.

HomesVic Shared Equity Scheme

In Victoria, first home buyers will also benefit through the new HomesVic shared equity scheme. This will provide up to 25 per cent equity for eligible home buyers and is a co-purchasing program limited to just 400 first home buyers who qualify for housing loans, but have yet to save up enough deposit to buy a property.

Queensland

There’s the argument that the best place to be a first home buyer is in fact in Queensland. Under the 2017-18 Queensland Budget, there will be $1.8 billion over 10 years injected into housing strategy – the biggest commitment to housing in Queensland’s recent history. This will create jobs as well as strengthen communities and build a better future for all Queenslanders.

This $1.8 billion includes:
  • $1.2 billion to renew the existing social housing property portfolio;
  • $420 million for a housing construction program to boost the supply of social and affordable housing;
  • $75 million to progress home ownership in discrete Aboriginal and Torres Strait Islander communities;
  • $100 million for reforms to the housing and homelessness service system.

Most Affordable Median Dwelling Price

Firstly, on an affordability scale, Queensland is home to the most affordable property prices out of all three states. Brisbane’s median dwelling price at 31 May 2017 according to CoreLogic sits at $490,000, compared to Sydney’s $872,300 and Melbourne’s $665,000. This lower property price, makes it far easier to save up a property deposit in Brisbane.

Stamp Duty Concessions

First home buyers may be eligible for concessions to stamp duty. There is no stamp duty to be paid for homes valued up to $500,000, whilst there are concessions available for homes valued up to $549,000.

First Home Owner Grant Extended

First home buyers in Queensland can also take advantage of the $20,000 First Home Owners’ Grant. This grant has been extended from 30 June 2017 to 31 December 2017 giving buyers an additional six months to save up a property deposit. To be eligible the property must be a brand new home and valued under $750,000.

According to Treasurer Curtis Putt, 4900 applications worth $98 million have been approved so far, identifying that this is a successful strategy worth continuing.

Federal Budget – Superannuation Scheme

According to the Federal Budget 2017-18, delivered by Treasurer Scott Morrison, first home buyers from 1 July 2017 will be able to use their superannuation towards buying their first home. You will be able to salary sacrifice earnings into your super with contributions capped at $15,000 a year for a total of $30,000 and taxed at a rate of 15 per cent. This scheme is thought to accelerate savings by at least 30 per cent, compared to a normal savings account.

Get in Touch

To learn more about buying property as a first home buyer in NSW, VIC or QLD and what properties could suit you, get in touch with the professional iBuyNew team. We have hundreds of properties to choose from whether you are looking for new apartments, townhouses or house and land packages.

Call us today on 1300 123 463 to discover more.
Published on 26th of June 2017 by Marty Stanowich
Marty Stanowich
Marty Stanowich

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