Ready, set, go for first home buyers
THEIR numbers have dwindled in recent years, but as of today, first home buyers are expected to be back on the Coffs Coast in a big way.
A raft of both federal and state incentives for those trying to buy their first property have come into effect, hoping to help young Aussies get a foot on the real estate ladder.
A package of reforms from the State Government includes abolishing stamp duty for first time buyers on all homes up to $650,000 and discounts for homes up to $800,000.
There will also be a $10,000 grant for those building new homes up to $750,000 in value and purchasers of new homes up to $600,000.
Additional savings will also be achieved by the removal of insurance duty on lenders' mortgage insurance.
When added together, the package will save the buyer of a $500,000 property $18,768 for an existing home or $28,768 for buyers of new dwellings.
Unrealestate managing director and Real Estate Institute of NSW board member Chris Hines is tipping a busy Saturday of open homes.
"I'm expecting we'll see a lot more first home buyers come back into the marketplace which will put pressure on investors who have been busying in the same price point."
Mr Hines said most local first time buyers are looking in the $400,000 to $450,000 price range; a rise of more than $100,000 in only five years.
And while the increase in buyers has some predicting the package of incentives may simply push prices higher, particularly in Sydney, Mr Hines is hoping it won't come to that on the Coffs Coast.
"It certainly can have that effect, but I think the market locally has stabilised in the last few months; it may put a bit of vitality back in the market."
In addition to the State Government's incentives, an integral part of this years Federal Budget also comes into effect today.
The First Home Super Saver Scheme allows individuals to make voluntary contributions of up to $15,000 per year and $30,000 in total, to their superannuation accounts for the purpose of buying their first home.
The contributions can be withdrawn for a deposit from July 1 2018.
The Federal Government estimates the First Home Super Saver Scheme could boost the savings first home buyers can put towards a deposit by at least 30 per cent compared with saving through a standard deposit account. This is due to the concessional tax treatment and the higher rate of earnings often realised within superannuation.