FIRST homebuyer incentives don’t start until July 1, but the government’s plan is already having an impact at auctions across Sydney. Yet in the inner city, it’s business as usual: many will continue to have to rely on the Bank of Mum and Dad.
The incentives offer first homebuyer exemptions from stamp duty for property priced up to $650,000 and discounts on property up to $800,000.
But many homes go for much more than that close to the city.
The townhouse came with this courtyard on title.
On Saturday, there were eight registered for a two-bedroom townhouse at 8/1 Durham St, Stanmore.
All were first home buyers, but the property sold for $1,322,000 — $122,000 above reserve.
The buyers were first-timers from Pymble.
There was no point holding out for the stamp duty savings at that price — they were ever going to benefit from stamp duty savings.
So how could they afford it?
Luckily, many of the first home buyers had the Bank of Mum and Dad to help.
It’s understood at least five of the first-home buyers had their parents with them, who were sure to be helping with the deposit.
Ray White agent Ercan Ersan said first homebuyer couples who can’t afford a house are now opting for townhouses because they’re a bit cheaper.
“If this was a house it would have probably fetched $1.6 million,” he said.
The first home buyers came from all over — from the north and the inner city, lured by the 201sqm of internal space.
Investors weren’t interest because of the difficulty in getting a loan and downsizers were put off by the stairs.
For cheaper-priced properties, first home buyers were definitely making calculated decisions as to whether or not it was worth their while bidding or not.
There were no takers on Saturday for this Camperdown unit …
A one-bedroom 69sqm unit in the popular City Quarter complex at 4404/6 Alexandra Drive, Camperdown passed in with no bids.
“My three main buyers were all first home buyers, but they all pulled out because they can make a great saving come the first of July,” Belle Property Annandale agent Maria Magrin said.
The price guide was $720,000. If it sold at that price, they would have saved $15,000.
“Even if it went to $750,000 they would have still saved some money,” she added.
But you can expect the price to be higher in July.
And things had been going so well before the State Government announcement earlier in the week, with six contracts being issued.
Ms Magrin has now recommended that her vendors wait until July to re-market the property — at which point it will probably go way last weekend’s price guide.
“We expect strong competition for it in July when the stamp duty concessions are in effect,” she said.
Even more properties stand to be impacted by the incentives further west.
Normally, first home buyers would be all over this in Northmead.
At the auction of a two-bedroom garden unit at 1/57 Beamish Rd, Northmead, an investor from the Blue Mountains was the only one to register. It sold for the reserve price of $550,000.
Ray White Parramatta agent Steven Fan said there would have normally been at least four first home buyers bidding.
“As of July, there’s going to be high first homebuyer activity and it will push the price up,” he said.
First home buyers dropped out early in the auction for this Pyrmont unit.
And in the east, the three first home buyers who bid for a one-bedroom unit at EG7/54 Experiment St, Pyrmont, dropped out early in the $600,000s.
It had a $550,000 price guide, so if it had sold for anything like that it would have been worth snapping it up then rather than holding it for the savings.