Recent changes to stamp duty in NSW are proving to be effective with recent figures showing that first-home buyers are making a comeback.
Data from the Australian Bureau of Statistics (ABS) has shown that the volume of first-home buyers has reached its highest point since 2012.
The proportion of first-home buyer commitments in Australia rose to 16.6 per cent in July 2017 from 14.9 per cent in June 2017.
Earlier this year government incentives were introduced to woo first-home buyers back into the market.
Stamp duty in the state was abolished as of July 1st for first-home buyers buying existing and new homes up to $650,000. Stamp duty concessions were also introduced for properties valued up to $800,000.
On top of this, the Federal Government introduced changes that allow first-home buyers to contribute up to $30,000 of voluntary superannuation payments ($15,000 per year), which can be used towards a deposit on a first home.
These incentives appear to have had the desired effect of attracting first-home buyers back into the property market after a long period of tough market conditions.
While first-home lending is on the up, investor lending went down, with the value of loans for investment housing falling by 3.9 per cent from June to July 2017.
The owner-occupier market as a whole has increased, with the total value of owner-occupied housing loans up by 0.9 per cent in July 2017.
While it may be too early to tell whether or not this will become a long-term trend, it certainly seems promising for the first-home buying market.
It’s a great time to be a first-home buyer with stamp duty concessions available, as well as the $10,000 First Home Owner Grant (New Homes) scheme still on the table.
Add this to the lowest interest rates in history and it’s a good time to start looking at property options, particularly if you live in an area where property remains affordable.
While places like Sydney may still be a tough market to crack into for young buyers, there is plenty of fantastic property options available in Mudgee for those looking to buy their first home.
If you’re looking to find your first home in the Mudgee region and would like to find out what your options are, contact the McGrath Central Tablelands team.