Sydney house price crisis: Help finally on the way for first homebuyers

EXCLUSIVE: Help may soon be at hand for desperate first homebuyers, with the NSW government considering offering grants to buy existing homes and deferring stamp duty payments.

Waz and Ashley Millar bought their first home in North Narrabeen a month ago. Picture: Jonathan Ng

• PROPERTY MARKET SLUMP WILL HAVE HUGE IMPACT
• A CHANCE TO BUY A DREAM HOME

HELP may soon be at hand for the state’s desperate first homebuyers, with the NSW government considering offering grants for the purchase of existing homes as well as new ones and deferring stamp duty payments.

Senior government sources say the options are “in the mix” as Premier Gladys Berejiklian moves to address what she said on taking office was the biggest issue facing her government.

Another option is increasing the threshold at which people who buy new builds get stamp duty concessions and first-home owner grants. At present, concessions are only available for purchases up to $750,000.

NSW Premier Gladys Berejiklian has moved to address the crisis and says improving supply is key.

Although Ms Berejiklian firmly believes the way out of the housing affordability mess is to improve supply, the government is understood in its June budget to be making changes around “demand” to benefit first homebuyers.

Victoria recently reintroduced stamp duty concessions for first homebuyers for existing dwellings worth up to $600,000. And NSW would have to lift the threshold above $600,000 if similar grants were applied here, government sources said.

The deferral of stamp duty for first homebuyers could mean they are allowed to pay it off over several years. But government sources said the idea was less likely than other options.

Already in NSW, first homeowners are eligible for $10,000 grants providing they buy a newly constructed home but the value of the property must not exceed $750,000.

Waz and Ashley Millar had to find a whopping $98,000 in stamp duty. Picture: Jonathan Ng

And those first homebuyers who buy newly built homes under $650,000 presently receive a stamp duty concession.

When she became Premier in January, Ms Berejiklian said housing supply was “the best way to address housing affordability” but that the government “needs to do more”.

Waz and Ashley Millar were in a vicious cycle of trying to save and rent for four years before they finally broke into the housing market four months ago.

The couple, both 28, from North Narrabeen, said since house prices have rocketed, stamp duty should be adjusted to scale.

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“Stamp duty was 3 per cent in 1980, and it’s the same now. It kills a lot of people,” Mr Millar said.

The couple, who weren’t eligible for a first homebuyers grant because of the cost of their house, were forced to scramble around to find a whopping $98,000 in stamp duty — money they say they simply didn’t have.

“The only way we were able to pay it was because we had a good friend who then helped us out,” he said.