The NSW state government budget announcement on 6 September about the scaling back of first home buyer concessions will come as an unwelcome shock to many potential buyers wanting to get into the market.
From 1 January 2012, only those who purchase a new property worth up to $600,000 as their first home, or a vacant block of residential land worth up to $600,000 that is intended to be the site of a first home, will be fully or partially exempt from stamp duty.
The new scheme means a loss of up to $17,990 in stamp duty exemptions for people looking to buy an existing property as their first home. And this could be the majority of NSW first time buyers, as a survey of first home buyers conducted by Mortgage Choice last year found 59% bought an established home.
For those looking to get a foothold in the property market, this should be a strong incentive to act before the new scheme kicks in. A professional mortgage broker will be able to help work out the eligibility and amount of stamp duty exemption or concession applicable, as well as other first home buyer benefits.
As with any major purchase, it's best not to rush in. Taking the time to research the area as well as getting the finances ready is very important in making the right choice.