With the newly-appointed NSW Premier
Gladys Berejiklian identifying housing affordability as a key issue moving forward, one property expert has said the government should now look beyond simply creating additional supply.
While there was a supply issue as the Sydney property market played catch up, focus should also be put on other areas of policy, Nathan Birch, cofounder of property investment group Binvested, told
Australian Broker.
“There are a few things that the NSW government could do,” he said. “Playing on stamp duty would be a nice one.”
With laws for stamp duty remaining unchanged for twenty years, the additional financial stress this caused has been rising exponentially, Birch said.
“Home buyers need to factor this into their overall purchase price, and it could be in the hundreds of thousands for stamp duty alone. Given the median house and apartment price, it’s basically a given that you’ll be hit with the additional fee, regardless of the cap the government promises.”
This was backed up by John Cunningham, president of the Real Estate Institute of NSW (REINSW), who also urged the new Premier to review the state’s “outdated” stamp duty policies.
“It's time for a Premier to step in and take charge. We believe that Gladys Berejiklian has the potential to be the Premier who leads NSW into a future where property consumers aren't being ripped off by outdated stamp duty brackets.
“Premier Berejiklian can lead NSW into a future were incentives for first homebuyers purchasing existing properties are reinstated. We call on Premier Berejiklian, as leader of the NSW Government to reduce stamp duty for first homebuyers by 50 per cent for the purchase of a residential property less than $1 million.
Birch also suggested that the NSW government could also bring in a first home buyers allowance – a policy which had not been used in general for many years.
“It is applicable for new builds but many first home buyers are locked out of that.”
Some stimulus from the government would be a positive move to support those wishing to enter the property market, he said.
Birch concluded saying that even if the government didn’t focus on these measures, the Sydney property market was still projected to experience positive growth.
Related stories:
Incoming NSW Premier to prioritise affordable housing
NSW driving surge in new investment lending
“Obvious” affordability solution ignored: REINSW
