Tue May 31

REINSW tax policy calls for first homebuyer relief

It is time for the state government to put the interests of first homebuyers at the top of its agenda, according to the Real Estate Institute of New South Wales.

As part of a review of its Real Tax Policy ahead of the June 10, 2016 NSW Budget, REINSW has called for the state government to make amendments to stamp duty for first homebuyers.

REINSW President John Cunningham said our first homebuyers are a class of property consumer that needs assistance.

“Home ownership is not only something that individuals should aspire to, it is also something that government should foster and encourage as a means of building wealth and providing for a persons care post employment,” he said.

Mr Cunningham called for the NSW government to provide first homebuyers with a 50 per cent reduction in the stamp duty on a purchase of a residential property less than $1 million and provide the ability to pay the stamp duty over time.

“Not supporting first homebuyers, is to say the least short sighted and creates the risk that our best and brightest will be enticed to other states where the dream of home ownership can be a reality.

“The existing first homebuyer incentives are focused on new dwellings. The strategy being, by focusing demand toward new properties this will correct the supply problem.

“Unfortunately the strategy has two major short comings, firstly most first homebuyers buy existing properties as new dwellings are financially beyond their capacity. Secondly increasing demand will not solve the supply problem.

“We refer to ourselves us the Premier State, if there is truth behind the words then providing a pathway for our first homebuyers into their own home, is a clear way to demonstrate that the words have substance,” Mr Cunningham said.