First home buyers seem to love the New South Wales property market. Now that prices have leveled out, many are looking to take advantage of the soon to expire stamp duty concessions and finally make their purchase.
In NSW, first home buyers currently receive a stamp duty exemption for home purchases under $500,000, with discounts calculated on a sliding scale between $500,000 and $600,000.
But from January 1, 2012, the stamp duty concessions will apply to new homes only.
In recent weeks, NSW estate agents are reporting a significant increase in the level of inquiries from First Home Buyers looking into the unit market opportunities.
Data from Loan Market Group released late last month also confirms the return of First Home Buyers to the NSW market, with the company reporting a 60 per cent increase in the number of first home buyer home loan enquiries in September.
Furthermore, 76 per cent of brokers outside of Loan Market are reporting similar results.
“The increase in activity around pre-approvals is a clear indication that parts of the NSW property market are due for increased competition,” Loan Market chief operating officer Dean Rushton said.
“What we’re starting to see in the NSW market right now is a similar scenario to the end of 2009 when the government withdrew the increased First Home Owners Grant. Market demand has been pulled forward and buyers are accelerating their purchasing plans.”