A $64 million State Government budgetary measure that will halve stamp duty on new homes in the coming financial year has been welcomed by Tamworth realtors but could have come sooner for the Aitken family.
Laura and Dean Aitken have almost finalised plans for a new four-bedroom home at Kingswood Estate.
They hope to be in by Christmas but unfortunately they have already purchased their land and will miss out on the State Government’s latest boon for home buyers.
From July 1 to December 31 buyers of new dwellings under $600,000, with the exception of first home buyers, will benefit from a 50 per cent cut to stamp duty.
First home buyers are already exempt from stamp duty for properties under $500,000.
The reduction will be available for newly-constructed houses and units, house and land packages, along with new homes and units that have never been occupied or previously sold.
Laura said the money they could have saved on stamp duty would have been put towards their new home or furniture.
PRD Nationwide principal Rob Philp said the measure would certainly help the home building
industry.
“My concern is that it is only reduced until the end of December, a limited timeframe to take action and purchase a new home,” he said.
“I don’t think it will have a massive impact on real estate sales as it only applies to new homes, but it certainly advantages builders with spec homes to sell.
“I think a number of people will then decide to leave existing homes to take advantage of the lower stamp duty impost and it will give first home buyers more choice in the
marketplace.”
Burke and Smyth Real Estate principal Gavin Knee said the the reduction would be a big help to second, third and fourth home buyers.
“It’s not going to set the world on fire or anything like that, but it might give people that extra incentive to upgrade, especially with low interest rates and the relatively secure employment in Tamworth,” he said.
“However, I don’t expect there will be a massive impact locally as in the city markets where they might have 20 to 30 display homes for sale.
“Definitely people buying the finished product can save maybe $8000 or $9000 and that is positive for our market.”
Real Estate Institute of NSW New England division chairman Rob Gilbert said anything that got money flowing again was good news.
“Real estate is such a wonderful investment,” he said.
“Whether or not it works depends on economic conditions, especially out here where seasonal agriculture can be the difference between whether people are buying or not.
“If the logic works, the more new homes that are built, the more existing can be sold.”
Tamworth Regional Council general manager Glenn Inglis said the stamp duty reduction would be good for the region.
“It will assist with the general transition of people moving through different levels of the housing market,” he said.
About 90 per cent of first home buyers have been buying established houses and units, according to NSW Treasury.
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