NSW To Double First Home Buyer Grant To Assist Development Industry

12/06/2012 8:42 am

 

The NSW State Government is set to announce the nation’s biggest first home buyers scheme. The State Government announced changes in the budget to more than double the first home buyer grant to $15,000 for buyers of new property under $650,000. This alone is a great move to assist the development industry.

However, the affect of this has been maximised by an interesting move by the government. The catch is that the $7,000 first home owner grant, will cease after 12 years of operation. The grant will know only be available to buyers who purchase a new house or apartment. This initiative is designed to motivate buyers to buy new rather than existing properties. This is seen as positive move that will give the development industry a much needed boost.

First home buyers of new houses and apartments will also continue to be exempt from stamp duty and it will now apply to properties up to $650,000. The changes come into affect from October 1.

Treasurer Baird, said the measures have been taken in order to address decades of neglect in the state’s housing and construction market.

“For too long, the NSW housing sector has been dormant at a significant cost to the people of NSW and our economy."

“This budget demonstrates the NSW government’s commitment to addressing the state’s housing shortage, kickstart the housing construction sector and get more people into new homes sooner,” Mr Baird said.

This innovative move by the Government, which should result greater demand for new properties and in turn greater incentive for new housing starts from developers. Stay posted for more analysis of real estate focused analysis of the NSW budget.