The Real Estate Institute of NSW (REINSW) is calling the state government to introduce a ‘pay as you go’ scheme for stamp duty to reduce cost for first homebuyers.
The introduction of a ‘Pay as You Go’ stamp duty plan for first homebuyers will allow a staged payment plan of property transfer taxes over three years.
This would enable payments to be staggered over time, reducing the burden of upfront stamp duty on top of a house deposit and assisting first homebuyers in a practical way.
REINSW says the urgent reform on stamp duty requires real innovation, along with the overall rate of stamp duty being cut.
“Housing supply and affordability are the key issues facing NSW which need to be tackled head on in the upcoming State Budget,” said REINSW President Christian Payne.
“Planning controls are delaying the delivery of new housing stock that is urgently needed to meet the growing demand of thousands of people flocking to live in Sydney.
“As a result, housing affordability is being squeezed with many simply unable to afford their own home.
“Add the significant additional burden of stamp duty to the already high price of real estate in Sydney, and you have a market that is pushing the Australian dream beyond the reach of many.
‘It is only through innovation that we are going to make inroads into these problems.”
Housing supply is failing to meet existing demand and this problem will only be get worse as more and more people move to Sydney.
“There is an urgent need for planning controls to be reformed in order to reduce red tape and costs, as well as providing greater certainty for developers.
“The problems of housing supply and affordability are fast becoming entrenched in NSW.
“There is a real opportunity now to deliver innovative solutions that will not only increase government revenues, but will bring the Great Australian Dream back into the reach of many thousands of young first homebuyers in NSW.