First home buyers located in the nation’s capital are being told to jump onto the property ladder sooner rather than later as stamp duty concessions for residents purchasing established residential properties are soon set to end.
Loan Market senior Canberra finance broker Craig Butt said the ACT Government was aligning its Home Buyer Concession Scheme (HBCS) more closely with the NSW Government’s First Home –New Home Scheme.
The HBCS is for first home buyers and people looking to re-enter the property market.
Mr Butt said the changes to the scheme from August 31, 2012, will look to only offer assistance to home buyers purchasing a new, or substantially renovated property and support new dwelling supply and activity in the housing construction sector.
He said the HBCS scheme would be wound up from August 31 for eligible buyers purchasing existing property while the concession for new homes or substantially renovated properties would end on December 31, 2012.
“We’re anticipating first home buyers seeking established properties will be more active in the period before the concession is phased out,” Mr Butt said.
Mr Butt said all first time buyers were still eligible for the federal government’s $7,000 First Home Owners’ Grant (FHOG).
“The FHOG is not income tested and is available for all people purchasing their first property and is applicable to new or established homes,” he said.
Mr Butt said the ACT scheme offered a full concession on stamp duty on property up to $385,000 and a partial concession on properties valued up to $450,000.
“The HBCS has helped many achieve the great Australian dream of home ownership,” he said.
“But time is running out to benefit from this concession with the HBCS for existing properties ending on August 31 and for new or substantially renovated properties on December 31.”