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…
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
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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