Is it possible for young buyers to purchase in the Sydney market?
Assistance from the government for first-time buyers purchasing a home is becoming less likely as the cost of small apartments in the Sydney market is overtaking the maximum price allowed to be eligible to receive stamp duty reductions, according to industry experts.
The NSW government’s First Home-New Home Scheme provides no stamp duty breaks for first-home buyers paying more than $650,000 for a home. A full exemption is only available up to $550,000. When the scheme was introduced in 2012, this cap would have covered most entry-level buyers as the median price for a one-bedroom apartment was $420,000.
Cohen Handler buyer’s agent Natalija Tanevska recently helped a 30-year-old purchase her first home in Stanmore after the young buyer had searched for more than six months.
The one-bedroom apartment, without parking, was bought for $580,000 pre-auction.
They were “lucky” to secure it at this price, she said, estimating it could have sold for more than $600,000.
“[Market prices] are anywhere from $550,000 for a real entry-level one-bedroom apartment through to $850,000,” she said.
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