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NSW Home Builders Bonus

Anyone buying land over the next two years should investigate whether they might be eligible for the Home Builders Bonus (HBB).

  • Off The Plan Dwellings Up to $600,000 will attract no stamp duty whatsoever during the eligible period which started on 1/7/1
  • The Purchasers of Vacant Land Up to $400,000 need pay no stamp duty if they can meet the conditions
  • Homes Under Construction or newly built up to $600,000 can qualify for a 25% stamp duty reduction
  • Seniors (over 65) pay no stamp duty on their purchase if they sell their house and buy a new house up to $600,000.
  • The NSW Government funded First Home Buyers Grant of $7000 still applies

Unfortunately there are strict conditions which apply to all the above bonuses so for details go to www.homebuyer.nsw.gov.au

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NSW State Budget – New Incentives for Home Buyers

As far as I can determine the latest NSW State Budget for 2010 – 2011 includes 4 incentives for some buyers to buy property, mainly new ones.

1)      “Off the plan buyers” up to $600,000 will no longer pay stamp duty. This is going to help developers obtain finance because banks want pre sales before firming up financial arrangements for their clients.

2)      Home buyers that buy during construction or at completion will receive a 25% reduction in stamp duty on purchases up to $600,000. This incentive will help some “spec builders”.

3)      “Empty Nesters” (or last home buyers) over 65 are being encouraged to sell their main home and buy another home up to $600,000. Those who do this will pay no stamp duty on the purchase.

4)      First Home buyers are getting $7000 plus they pay little or no stamp duty on home purchases up to $600,000 for another two years.

Those interested are encouraged to read the fine print about the “NSW Home Builders Bonus” by looking at the Office of State Revenue site.

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INTERESTING STATISTICS

There seems to be one sector of the real estate market that is humming along quite nicely and that is the first home buyers market.

Some interesting statistics in the Financial Review on 25th February show just how the “First Home Owners Boost” is working:

  • 30,000 people have made a first home purchase since mid October till the end of January
  • Of these 10,438 were in NSW
  • 25% of the 30,000 grants were being used to buy new homes

The aim is that these purchasers will provide a flow on effect and keep many other industries in business such as real estate agents, builders and tradies. Let’s hope so as last nights news that Pacific Brands (producer of iconic brands King Gee, Bonds and Holeproof), was sending production overseas and lots of Aussies had lost their jobs as a result, was extremely disappointing.

Another result of the “First Home Buyers Boost” is that the pressure on the rental market has eased. Last year the rental market was so short on supply that landlords were able to increase rents significantly and occupancy rates were at an all time high.  This was also a significant problem for the government in its bid to curb inflation.

Auction clearance rates for last week were locally very low with a 30% success rate in comparison with the Sun Herald’s Sydneywide clearance rate of 67%.

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