Homebuyers shattered as ‘$70k bonus’ nears end
The end of a homebuying help scheme that can shave as much as $70k off the cost of a new property is bringing house seekers to tears.
It was a day of immense highs and crashing lows for first homebuyers at auctions across Sydney on Saturday.
The young buyers were out in force, keen to take advantage of the final days of a government tax incentive.
The First Home Buyer Choice (FHBC), which allows eligible buyers to ditch stamp duty in lieu of an annual tax, expires on June 30.
Sydney first homebuyer Lara Hirsch was hoping to buy a home to enter the FHBC, however was left devastated after being outbid in Tempe.
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The 28-year-old came out firing with the first bid of $1,250,000 at the two-bedroom home at 39 Hart St and it didn’t take long before the increments reduced from $25,000 to $1000 and $500.
Auctioneer Clarence White dropped the hammer at $1,466,000, with the successful bidder John Denny, who is downsizing from a large house in Newtown with his two dogs.
Ms Hirsch, who was supported by her partner Sam McMahon, described the auction as “tense” and said she was disappointed not to walk away the successful bidder.
She said she had hoped to take advantage of the FHBC scheme before it ended.
“I really loved this house,” she said.
“I had a limit and went over it. I was hoping to get into the market before stamp duty came back in full force. When it does, we have to factor in 50, 60, 70 grand on top. It’s got to come from somewhere.
“I am lucky because I have family help, which is the only way to buy in at this stage.”
Ms Hirsch said she had a few more homes to look at over the coming days, however the Tempe home was her top choice.
For the successful buyer, Mr Denny, it was the end of a long search after he decided to sell his larger home in Newtown.
“I had looked at 70 homes in person and more than 100 online,” he said.
“It’s nice to buy and sell in the same market.”
Agent Adrian Tsavalas, from Adrian William Real Estate, said the house sold $66,000 over reserve which was a strong result in the street.
He said the FHBC had stimulated the market with a rush of buyers hoping to sign up before it expired.
Mr White said there had been strong activity across the Sydney auction scene with good quality homes selling quickly.
He said a spike in appraisals was likely to see more stock come onto the market.
Meanwhile in Thailand, a young first homebuyer was ecstatic after fending off other first homebuyers vying for an apartment in Coogee.
The young buyer was on the phone to a friend who was bidding on their behalf for the two bedroom unit at 10/253 Carrington Rd.
The crowded auction, with seven registered bidders including other first homebuyers, opened at $1.4m and came down to a couple and the young buyer with many back and forth bids of $500.
Cooley auctioneer Jake Moore dropped the hammer at $1,435,000, $15,000 above the reserve.
Agent Chris Cantarella, from The Agency, said she had an original guide of $1.2 million on the apartment, but received three offers prior to auction with the highest $1.407m.
She said a number of other first home buyers who were interested in the apartment dropped off in the lead up to the auction.
“A lot of them didn’t want to wait until today as it wouldn’t have given them much time to purchase something else and be included in the incentive,” she said.
The buyer, who exceeded their limit to secure the unit, was thrilled and is planning to take advantage of the FHBC before it expires.
Other strong auctions were recorded across the Harbour City as the financial year draws to a close.
A five bedroom home in need of immediate renovation at 16 Humphrey Street Rosebery sold for $2,420,000 which was $420,000 over its reserve.
Agent Krissie Ormond, from The Agency, said there were 10 registered bidders with seven active during the auction.
Ms Ormond said the deceased estate was bought by a young doctor moving to the area for work.
A home at 9 Saddington St, Turramurra sold $25,000 over reserve for $2.775m.
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There were nine registered bidders, six active, with the sellers relocating to be closer to family.
“The buyers were a couple upsizing. They had bid at an auction I held earlier in the day and missed out, but they landed the winning bid on this one,” Agent Liana Power from Ray White said.
“The market has been really good. We brought this auction forward by a week as the interest was so strong.”
PropTrack economist Anne Flaherty said there were 635 auctions scheduled in Sydney this week, up 24 per cent from last year.
“Selling conditions remain robust, with clearance rates averaging in the high 60 per cents. Further, prices are continuing to rise and recovering last year’s lost ground,” Ms Flaherty said.
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Originally published as Homebuyers shattered as ‘$70k bonus’ nears end
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