First timers flood NSW market

By webmaster

Data from Loan Market Group has confirmed first time buyers in New South Wales are acting quickly to gain pre-approvals in an effort to secure finance before the stamp duty concession runs out at the end of the year.

Loan Market chief operating officer Dean Rushton said in the past three weeks, 60 per cent of the company’s brokers in NSW were reporting a spike in first time buyer enquires, while 76 per cent of brokers outside of Loan Market are reporting similar results.

“The increase in activity around pre-approvals is a clear indication that parts of the NSW property market are due for increased competition,” he said.

“What we’re starting to see in the NSW market right now is a similar scenario to the end of 2009 when the government withdrew the increased First Home Owners Grant. Market demand has been pulled forward and buyers are accelerating their purchasing plans.

As of January 1, 2012, first home buyers in NSW will no longer be able to claim stamp duty exemptions on existing homes valued up to $600,000. Instead, only first home buyers purchasing new homes will be eligible for the concession.

RFi director Alan Shields told Smart Property Investment, that the sudden surge in first home buyer activity will be short lived, as many buyers will be forced out of the market due to the additional expenses.

“If you had asked me a couple of weeks ago I would’ve said first home buyers are going to be well out of the market for the foreseeable future,” Mr Shields said.

“However, the changes to stamp duty exemption on existing property are going to create a rush of first home buyers coming into the market over the short-term, and then it is going to be like famine and feast. I think we are going to see just a total lack of first home buyers after that.”

First timers flood NSW market
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%