22 November 2019
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First time home buyer hot spots in NSW

John McGrath
19 March 2018

Since stamp duty exemptions and concessions were introduced on July 1 last year, more than 19,000 people have bought their first home in NSW. This is great news for young people realising their dream of home ownership.

Your first home is not just an amazing personal milestone, it’s also a cornerstone financial asset that will likely serve you in many ways throughout, at least, the first half of your life. 

Primarily and most importantly, it provides you with your own little place in the world, where you can paint the walls whatever colour you like and make improvements along the way to create your perfect space. 

Secondly, your first home also provides a major financial building block that can be used in many ways. For example… 

  • Some years down the track, your first home will probably have some new equity in it that you can use for other things (like buying an investment or starting a business)
  • Maybe you’ll take the capital growth and sell it to help buy your first family home
  • You can also move out and lease it, converting your first home to an investment property for long term income and wealth accumulation

With all these options and benefits in mind, it’s great to see so many young people taking advantage of incentives to purchase their first homes now.

So, where are they buying?

The NSW Government recently released a list of suburbs with the greatest number of first home purchases since July 1, 2017 and there were two clear trends. Take a look.

Top 20 Suburbs for First Home Buying in NSW since July 1, 2017

  1. Liverpool – 406 buyers in FY18 so far, up from 166 in FY17
  2. Kingswood – 399 buyers in FY18, up from 154 buyers in FY17
  3. Camden – 387 buyers in FY18, up from 191 in FY17
  4. Campbelltown – 345 buyers in FY18, up from 114 in FY17
  5. Riverstone – 340 buyers in FY18, up from 319 in FY17
  6. Gosford – 316 buyers in FY18, up from 35 in FY17
  7. Leppington – 304 buyers in FY18, up from 178 in FY17
  8. Westmead – 264 buyers in FY18, up from 114 in FY17
  9. Blacktown – 252 buyers in FY18, up from 136 in FY17
  10. Wagga Wagga – 251 buyers in FY18, up from 62 in FY17
  11. Orange – 230 buyers in FY18, up from 49 in FY17
  12. St Marys – 225 buyers in FY18, up from 48 in FY17
  13. Wyong – 224 buyers in FY18, up from 78 in FY17
  14. Queanbeyan – 222 buyers in FY18, up from 75 in FY17
  15. Penrith – 207 buyers in FY18, up from 65 in FY17
  16. Mount Druitt – 197 buyers in FY18, up from 25 in FY17
  17. Ingleburn – 190 buyers in FY18, up from 95 in FY17
  18. Dubbo – 182 buyers in FY18, up from 47 in FY17
  19. Tamworth – 170 buyers in FY18, up from 39 in FY17
  20. Parramatta – 170 buyers in FY18, up from 81 in FY17

The first trend is the more affordable Western and South-Western suburbs of Sydney dominating the list.

At the top is Liverpool, where the median price of a two bedroom apartment is $440,000*. So far in FY18, 406 young buyers have purchased their first homes here, up from 166 in FY17.

The other westerly hot spots are Kingswood, Camden, Campbelltown, Leppington, Westmead, Blacktown, St Marys, Penrith, Mount Druitt, Ingleburn and Parramatta.

The second trend is a spike in first home buying in country areas, where young people are demonstrating very smart thinking.

At the end of the day, it’s obvious that the stamp duty concessions were primarily designed for first home buyers in Sydney, where property prices are high and affordability is a genuine issue. But country buyers in far more affordable locations can also take advantage of them, so why wouldn’t you jump at that?

According to the figures, young country buyers have been particularly proactive in Wagga Wagga, where the median price of a three bedroom house is $376,000 and the median price of a two bedroom apartment is $257,500. Stamp duty exemptions have prompted 251 locals to purchase their first home in FY18, up from 62 in FY17.

Orange is not far behind with 230 first buyers in FY18, up from 49 in FY17. Here, a median priced three bedroom house costs $338,500 and a two bedroom apartment is $240,000.

Other country hot spots included Dubbo and Tamworth.

I will always be a strong advocate for first home buying, as I think it’s the most important and effective way for young people to create a foundation for personal financial stability.

I encourage young people in NSW to seriously consider how they can use the stamp duty concessions available to set up their futures sooner rather than later. We don’t know how long these incentives will be in place, so it’s a smart move to assess your numbers now.


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