Skip to content Skip to main navigation

Lifestyle

Part of the Canberra community
for over 30 years

Stamp duty tweaks for first home buyers

By johnboy - 1 June 2013 32

Happy news for everyone waiting until the investors get burned before getting into the real estate market.

Andrew Barr has announced stamp duty concessions:

The ACT Government Home Buyer Concession Scheme (HBCS) provides a discount on stamp duty for eligible households purchasing a new property as their principal place of residence. As long as the purchaser meets the eligibility criteria including the income test, a discount is provided.

From 5 June 2013, the income limit will be further increased from $150,000 to $160,000 per household. Under this reform, an estimated 70 per cent of Canberra households will be eligible for the concession against this criteria. Properties worth under $425,000 will only incur Stamp Duty of only $20. Properties between $425,000 and $525,000 will pay a discounted duty.

A purchaser can also be eligible for both the First Home Owners Grant and HBCS. For example, an eligible first home buyer who purchases a house and land package worth $415,000 will pay only $20 in Stamp Duty and will receive a $12,500 cash payment.

What’s Your opinion?


Post a comment
Please login to post your comments, or connect with
32 Responses to
Stamp duty tweaks for first home buyers
Grail 1:47 pm 02 Jun 13

arescarti42 said :

milkman said :

no you just got to buy a property that was around half the price (in real terms).

Much like their incomes at the time.

Wrong.

Prior to the mid 90s you could buy the median house for 3x the median income. Now the median house is 5-7x the median income depending on which city you live in.

House prices have massively outstripped incomes.

House prices are quite adequately tracking the 3x household income line. It’s not the baby boomers, it’s the multi-income families. As buying power increases, prices increase to match.

Darkfalz 1:21 pm 02 Jun 13

Income caps and price limit still way too low. Thinking 250k income limit and 800k house limit would be fairer. We are talking first HOMES here, not dingy little IPs.

The cap is also stupid in that there’s no sliding scale. Could take 4 months off without pay to slide under 160K and ultimately come out ahead. No-one should be mulling that over.

arescarti42 1:00 pm 02 Jun 13

milkman said :

no you just got to buy a property that was around half the price (in real terms).

Much like their incomes at the time.

Wrong.

Prior to the mid 90s you could buy the median house for 3x the median income. Now the median house is 5-7x the median income depending on which city you live in.

House prices have massively outstripped incomes.

MrPC 12:54 pm 02 Jun 13

Where does the $12,500 cash payment figure come from? The ACT revenue site clearly says the first home builders grant is $7k and the first home owners boost ended years ago.

Is this something about the cash back arrangements for landscaping, solar hot water, and ducted heating systems? Those don’t add up to $5.5k.

HiddenDragon 12:36 pm 02 Jun 13

Shinigami_Josh said :

dungfungus said :

To all those advocates for first home buyers that blame babyboomers who own several properties for inflating property prices. We didn’t get any “99.99% concessions” on stamp duty or substantial handouts when we bought our first (and only) home.

no you just got to buy a property that was around half the price (in real terms).

In some cases, it may have been even less than half, in real terms (depending on what allowance is made for interest rates then, compared to now) but whatever the case, I don’t think housing affordability is just about baby-boomers vs the rest. There are plenty of “pre-boomers” *** who have done very nicely out of the system, and who are still very much alive and kicking and assiduously managing their wealth (including property), together with Gen-Xers (whether or not DINKS) who have the means to play the property market and finally, let us not forget some of the upwardly thrusting Gen Ys – already making nice incomes, and well able to take on a negatively geared investment property while still living at home with their boomer parents.

It is probably also worth mentioning that many of the people who are grumbling – not without reason – about property prices will, as a result of these inflated prices, be in line for some very nice inheritances from their parents and grandparents – so in these cases, it might essentially be a matter of deferred gratification.

Bottom line, in my view, is that things will only change for the better in the fairly unlikely event that we get a bipartisan approach to the policies (not just negative gearing) which have produced the ridiculous property prices we now see in Australia. Andrew Barr’s announcements are a small, but apparently well considered and intentioned, step, or two, along a rather long road.

***http://www.smh.com.au/news/national/the-luckiest-generation-preboomers/2008/12/26/1229998733262.html?page=fullpage

Tetranitrate 12:35 pm 02 Jun 13

milkman said :

Shinigami_Josh said :

dungfungus said :

To all those advocates for first home buyers that blame babyboomers who own several properties for inflating property prices. We didn’t get any “99.99% concessions” on stamp duty or substantial handouts when we bought our first (and only) home.

no you just got to buy a property that was around half the price (in real terms).

Much like their incomes at the time.

No, the price/income ratio was way way lower prior to the big run-up in prices that started in the late 90s and went totally berzerk around 2001-3 (provoked by Howards ‘first home buyer’ incentives)
Prices way way overshot incomes.
http://www.rba.gov.au/speeches/2008/images/sp-so-270308-graph7.gif
also
http://www.rba.gov.au/speeches/2008/images/sp-so-270308-graph1.gif
Doesn’t really matter though, no discussion on here will change anything.
Boomers will still twist the facts to try and maintain the notion (at least in their own heads) that the massive capital gains they enjoyed were anything other than raw expropriation of income from future generations.

Of course the whole wretched structure – the housing racket and all the duopolies and other rent-seekers are making Australia seriously un-competitive, and with mining having peaked it’s going to become impossible to paper over. There’s bugger all point debating the justice of it or anything, gravity is taking over now.
Doesn’t mean we’ll necessarily have big nominal price falls though, exchange rate and imported inflation could allow for a reset in real terms without an actual crash, depending on whether the RBA will let inflation run high for a little while or not when the AUD starts really declining.

Tetranitrate 12:21 pm 02 Jun 13

>baby boomers thinking first home buyers grants and other such concessions are there to help first home buyers
Oh dear.

I can’t really be bothered wading into this any deeper. Whatever.
http://www.youtube.com/watch?v=piVnArp9ZE0

milkman 12:16 pm 02 Jun 13

Shinigami_Josh said :

dungfungus said :

To all those advocates for first home buyers that blame babyboomers who own several properties for inflating property prices. We didn’t get any “99.99% concessions” on stamp duty or substantial handouts when we bought our first (and only) home.

no you just got to buy a property that was around half the price (in real terms).

Much like their incomes at the time.

Shinigami_Josh 11:47 am 02 Jun 13

dungfungus said :

To all those advocates for first home buyers that blame babyboomers who own several properties for inflating property prices. We didn’t get any “99.99% concessions” on stamp duty or substantial handouts when we bought our first (and only) home.

no you just got to buy a property that was around half the price (in real terms).

rosscoact 10:48 am 02 Jun 13

😀 always entertaining

HiddenDragon 10:34 am 02 Jun 13

There are worse (far worse) things that the ACT Government could do with our money than spend it, as here, in a targeted manner designed to keep people in jobs – which should have flow on benefits for the economy more generally. That said, it will be most interesting to look at the affordability of this, and other Budget measures, in light of the plausibility of the forecasts for return to a balanced ACT Budget.

chewy14 10:33 am 02 Jun 13

dungfungus said :

To all those advocates for first home buyers that blame babyboomers who own several properties for inflating property prices. We didn’t get any “99.99% concessions” on stamp duty or substantial handouts when we bought our first (and only) home.
At a time when governments should be showing restraint in spending (especially given the huge turnaround in the budget position predicted 12 months ago) Andrew Barr has gone beserk on a “cargo cult” program and he is annointing himself as some sort of hero for saving the ACT economy for the future recession that the coalition governmnent is supposed to be giving us. He is also quarantining the ACT public service (and their huge unfunded superannation liabilities) from culling.
The kangaroos in the ACT aren’t going to be so fortunate.
Barr needs to divorce himself from art exhibitions, sporting fixtures, tourism cocktail parties and drive around Canberra to see the empty shops and warehouses to get a true assessment of what has happened in the ACT while he has been treasurer.
The “triple your rates” prediction by the Liberals now seems to be a certainty.

Yeah because these types of policies are solely designed to help first home buyers.

Oh look, some flying pigs.

dungfungus 8:31 am 02 Jun 13

To all those advocates for first home buyers that blame babyboomers who own several properties for inflating property prices. We didn’t get any “99.99% concessions” on stamp duty or substantial handouts when we bought our first (and only) home.
At a time when governments should be showing restraint in spending (especially given the huge turnaround in the budget position predicted 12 months ago) Andrew Barr has gone beserk on a “cargo cult” program and he is annointing himself as some sort of hero for saving the ACT economy for the future recession that the coalition governmnent is supposed to be giving us. He is also quarantining the ACT public service (and their huge unfunded superannation liabilities) from culling.
The kangaroos in the ACT aren’t going to be so fortunate.
Barr needs to divorce himself from art exhibitions, sporting fixtures, tourism cocktail parties and drive around Canberra to see the empty shops and warehouses to get a true assessment of what has happened in the ACT while he has been treasurer.
The “triple your rates” prediction by the Liberals now seems to be a certainty.

460cixy 6:29 am 02 Jun 13

Going to have to look in to this I’m buying now and have not paid stamp duty as yet might save me some coin

banco 12:40 am 02 Jun 13

I’m confident the coming Abbott Government will flush the spivs out of the Canberra property market.

1 2 3

Related Articles

CBR Tweets

Sign up to our newsletter

Top
Copyright © 2017 Riot ACT Holdings Pty Ltd. All rights reserved.
www.the-riotact.com | www.b2bmagazine.com.au | www.thisiscanberra.com

Search across the site