It was announced that first-home buyers will now pay no stamp duties on homes valued up to $450,000, increasing the previous threshold by $20,000. This means a total savings of $15,390 for those buyers.
Stamp duty is a fee you pay to the government when purchasing property, land and some other assets. It’s paid to transfer the ownership of the asset into your name.
It’s calculated on the market value of your property or the price you paid, whichever is higher. This is also known as dutiable value, the higher the value the more expensive the stamp duty will be.
It’s the first time these thresholds have been amended since 2014.
The thresholds for first-home buyers purchasing vacant land remain unchanged.
John Percudani, Realmark managing director, said that increasing these thresholds has the potential to significantly assist first-home buyers and take off some added pressure.
“While any support is welcomed, the challenges in the residential property market are still widespread.”
The budget also included several previously announced plans to improve housing supply, including the Vacant Property Rental Incentive Scheme.
This scheme offers a $5,000 grant to owners of vacant residential properties who transfer them into a long-term rental for at least 12 months.
A similar scheme was announced before this one called the Short-Term Rental Accommodation (STRA) incentive.
According to REIWA, the STRA incentive has led to 150 homes transiting into the long-term rental market and it has been extended due to the success.
Emma Thorpe the associate director of residential property management at Realmark Urban, expressed hope that the new incentive programs would motivate investors to assist the Perth rental market.
“There are requirements that owners will need to meet to be eligible for these grants,” said Ms Thorpe
Mr Percudani said the budget actions will be beneficial, however, the macro impacts of supply, interest rates, property on-costs and stamp duty are significant ongoing factors.
For more information or to have an obligation-free chat with your local real estate expert contact Realmark on 9388 3911.