The Real Estate Institute of New South Wales says policies being considered by the New South Wales government to improve housing affordability for first homebuyers is a step in the right direction.
The REINSW says that the policies being considered by the NSW government, such as grants for first-home buyers for new and existing homes and amendments to stamp duty, are consistent with the policies they are recommending themselves.
“We must see true support of first homebuyers in the June 2017 Budget," said Cunningham.
Cunningham says the REINSW has been calling for reform of stamp duty in NSW for years.
He said the REINSW proposes that stamp duty be abolished for first homebuyers, and that stamp duty brackets, which have not been adjusted for 30 years, be amended to suit current market conditions.
“We believe that supporting first homebuyers to purchase new and existing property is the right path," said Cunningham.
“Research shows that 90 per cent of first homebuyers purchase existing properties," he said, indicating that policies to help first homebuyers must apply to both types of property.
The REINSW proposes:
- a 50 per cent reduction in the stamp duty on a purchase of all residential property with a purchase price of less than $1 million
- giving buyers the option to pay stamp duty over time instead of upfront
- put schemes to encourage purchasing property in regional areas of NSW back on the agenda
Cunningham says helping first homebuyers will help more people in New South Wales to realise "the great Australian dream of owning their own home".
“NSW must act swiftly and decisively in the June 2017 Budget," warned Cunningham. "If we do not, we will lose out to more affordable states."
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