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Why today is a great time to be a NSW first home buyer

Published on 2nd November by Josh Johnston

Why today is a great time to be a NSW first home buyer

Today seems to be a great time to be a first home buyer with new government incentives and Australian lenders providing attractive offers to incentivise more first home buyers to buy a property and take out a loan.

Latest data from the Australian Bureau of Statistics (ABS) now reveals that the number of first home buyer and owner occupier housing finance commitments has experienced a comeback during August 2017, with 10,227 first home buyer and owner occupier finance commitments, the greatest amount since December 2009.

Some lenders are starting to compete and offer incentives to get more first home buyers through the door. Lenders are now offering anything from 350,000 in rewards points, to waiving fees for the life of the loan. You can even lower your repayments with a special introductory variable rate as well as not paying any establishment fees. If you prefer more certainty around your payments then you could even take advantage of a 2-year fixed rate of 3.69%, ideal for first home buyers with a low deposit.

However, it’s important to do your research and shop around to ensure you are getting the right loan to suit you, rather than just going for the cheapest loan possible. Speaking to a good reputable Mortgage Broker can help you with this and our iBuyNew team will be able to recommend a variety of Mortgage Brokers we work with on a regular basis.

So, what else can first home buyers take advantage of when purchasing their first property in NSW? Here are a number of factors to keep in mind.

1. Zero Stamp Duty

One of the greatest costs of buying a property, besides the actual cost of the property itself is stamp duty. In NSW, a $700,000 property would cost owner occupiers almost $27,000 in stamp duty – a hefty sum to pay. Fortunately, first home buyers from 1 July 2017 will no longer have to pay any stamp duty on properties under $650,000 in NSW or under $600,000 in VIC. There are also stamp duty concessions available in NSW for properties up to $800,000 and up to $750,000 in VIC.

This change in stamp duty policy seems to be having a real impact with first home buyer finance commitments increasing by 59% in NSW and 34% in VIC between June and August 2017.

2. First Home Owner Grants

Eligible first home buyers can also take advantage of the first home owner grant if they purchase a brand new property such as off the plan apartments or a house and land package. In QLD, first home buyers can save $20,000 with the First Home Owner Grant, but only until 31 December 2017, whilst first home buyers outside of Melbourne CBD will also save $20,000, but only $10,000 within Melbourne. In Sydney, first home buyers could be eligible for the $10,000 grant.

3. Insurance Duty on Lenders’ Mortgage Insurance Abolished

From 1 July 2017, first home buyers will also benefit from the abolishment of insurance duty on lenders’ mortgage insurance. This means a home valued at $800,000 and a buyer with a $50,000 deposit who requires LMI, could save approximately $2,900.

4. New Super Plan to Increase Savings

First home buyers from 1 July 2017 will also be able to save for a home deposit faster by salary sacrificing into their super fund. This means that individuals can put a total of $30,000 into their super, or $15,000 maximum per year at a tax rate of 15 per cent. This is anticipated to speed up savings by approximately 30 per cent, compared to a normal savings account.

5. More Affordable Property

In an attempt to ease the burden of rising property prices in NSW, the government will boost the supply of reasonably priced housing by delivering an additional 30,000 homes through expanding Property Precincts and Priority Growth Areas.

Get in Touch

At iBuyNew, we have a number of properties in NSW that are still under the $500,000 mark which you might be interested in, if your budget is restricted. To find out more about what other incentives might be currently available, it’s best to speak directly with our friendly Property Consultants.

Alternatively, if you find NSW property still too expensive, there is the option of moving interstate and live as a first home buyer interstate, or purchase your first property as an investment.

To learn more about these options and what properties are currently available for sale, call iBuyNew today on 1300 123 463.

Josh Johnston

Josh has 20 years experience in the real estate industry and is focussed on helping his clients find their next off the plan property. For more information, contact Josh by email, josh@ibuynew.com.au, or call 1300 123 463.

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