South Australia is making waves in the housing market with a new initiative designed to ease the financial burden on first-home buyers and stimulate new home construction across the state.
Starting with the 2024-25 state budget, first-home buyers who build or purchase new homes will receive a $15,000 grant and will be exempt from paying stamp duty, irrespective of the property’s value.
This bold move by the SA Government as one of the first states to enact this policy might provide evidence that this scheme helps first home buyers, and have other states follow suit.
Adelaide Buyers Agent, David King commented, “It’s fantastic news because in the past, property value caps limited the benefits of the $15,000 First Home Owner Grant and stamp duty exemptions. By abolishing these caps, it will save first-home buyers tens of thousands of dollars.”
“Many of the buyers that I speak to daily, have expressed their concerns about the increasing pressures of getting into the market, especially in the past year as Adelaide’s house prices surged by more than 14%, according to the latest PropTrack Home Price Index.“
Premier Peter Malinauskas emphasises that each new home built helps alleviate the broader housing crisis. Peter stated,“We are amid a national housing crisis borne of successive governments failing to do enough to build new homes.” “Every first-home buyer that can move into a new home means one less buyer or renter competing for existing stock.”
Who is eligible?
This policy applies to first-home buyers purchasing new homes, off-the-plan apartments, house and land packages, or vacant land for new construction.
Economists and industry leaders have praised the initiative. PropTrack senior economist Paul Ryan highlighted the significant role stamp duty plays in limiting access to homeownership. Master Builders SA chief executive Will Frogley called it a “great day for South Australian first-home buyers,” noting the policy’s potential to drive new home construction, create jobs, and bolster the economy.
More information about eligibility for the scheme can be found here.
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