First home buyers (FHB) looking to purchase an established property may be feeling a little bit miffed following the State Government’s recent budget announcement around reduced stamp duty concessions.
However, WA is still one of the most favorable locations to buy your first home. In comparison to all other states and territories (with the exception of QLD), based on purchasing an established home for $450,000, the difference in stamp duty can be quite substantial.
Proposed changes for 1st July 2014
Under the proposed changes, stamp duty concessions will run out at $430,000, down from the previous limit of $500,000. If a FHB purchased a property for $450,000 in WA, they can expect to pay stamp duty of $3,838, whilst our eastern states counterparts can expect to part with between $11,382 to $20,057.
Another factor in favour of FHB is the fact that average housing prices have dropped over the last 3 months in Perth. According to the HIA-Commonwealth Bank’s recent release of housing figures, the average price of Perth housing has dropped 2.7% in the last quarter. This drop in prices is a positive for FHB as a lower purchase price will overall reduce the amount of stamp duty payable, lessening the blow of the new budget changes.
No First home owner grant changes
There were no changes to the First Home Owners Grant floated from the budget. The entitlements remain as follows;
• $3,000 for an established property
• $10,000 for a new or construction property
How to get on the right path to purchase your first home – Call today!
It's never too late, or too early, to start planning for your 1st home. If you would like to talk with an experienced mortgage broker to help you navigate through the home buying process, please give Steve Sims today on 0433 124 081 or email firstname.lastname@example.org