LOWER Norton’s Stacey McClure had just signed the paperwork for her first home when the state government announced its plan to abolish stamp duty for first-time buyers.
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Ms McClure, a makeup artist business owner and retail worker, bought a new unit in Horsham this week.
“I’m one of those that missed out,” she said.
“It would have been incredible to get the stamp duty off, it would have made an amazing difference.
“It’s so hard to get a deposit together. I’ve literally spent my life savings so having an extra few thousand dollars would have been great.”
The government announced on Monday that first home buyers would not have to pay stamp duty on new or existing home purchases up to $600,000.
The maximum tax break would be $15,000 per purchase.
Ms McClure said a lot of her friends would benefit from the tax cuts and a doubling of the first home buyers grant to $20,000 for regional areas.
“They’re going to get all the bonuses,” she said.
The stamp duty cuts and double grants come into effect in July.
PRD Nationwide Horsham director Wes Davidson said the stamp duty changes would undoubtedly have an effect.
“It will make a huge difference for first home buyers in the higher end around the $300,000 mark. First Home buyers who are looking to build a new home will also be able to get $20,000 from the grant.” he said.
“First home buyers will have a wider choice and it will raise the power of their deposit because they won’t have to pay stamp duty.
“Of course, buyers will still be limited by their capacity to meet repayments.”
Mr Davidson said when the first home buyers grant came in around 2001 he definitely did see an impact.
“I don’t think there will be much of an inflationary effect because the $600,000 limit includes the high-end of Horsham real estate.”
“The might be some price increases in come areas, possibly around the $300,000 but first home buyers do not make up the the majority of the market.”
Horsham Harcourts director Mark Clyne also said the changes would have an effect on the Wimmera’s housing markets.
“It won’t be as big an effect as in the city because Horsham’s prices aren’t as high,” he said.
“Most first home buyers will be looking at properties up to $300,000. It’s certainly more of a leg up than the older generation of buyers got.
“We do see that people are getting married later, so instead of buying their first house at age 20-21 it’s in the late twenties.”
Mr Clyne said low interest rates would also have an effect.
“The housing market is flat right now. If you did wait until July 1 the prices might be higher,” he said.
“For a lot of first home buyers in Horsham $3000-4000 is not going to stop anyone buying a house. It will mean they have a few thousand dollars to spend somewhere else.
“The bigger effect will be from the first home buyers grant. For a $400,000 house package, $20,000 is five per cent. I think the government is on to a winner with this by restricting it to areas outside of metropolitan Melbourne.”
Mr Clyne said the double first home buyer grants would stimulate building activity and Horsham’s major house building companies would see the biggest benefit.