Effects of stamp duty relief for FHB from 1 July 2017
The last time the NSW government did this, it was at the early stages of a boom around the time of the GFC. It had the effect of increasing house prices by at least the stamp duty and FHB grant amounts. This time however, they are introducing it at (what might be guessed at a point) towards the end of a boom. If the market was due for a breather in capital growth terms, this will probably keep the market fired up. We’re starting to see more listings with prices hovering around $650K and FHB getting finance pre-approvals in order.
What we see as buyer’s agents when competing with FHB’s is their emotions getting in the way of good judgement along with a healthy dose of FOMO which often leads to them overpaying. Selling agents are seen to be taking advantage of the FHB’s inexperience also. In our (obviously biased) opinion a FHB would do well to use part of the savings they make on not having to pay stamp duty to hire a professional buyer’s agent on their team to level the playing field.