An interest rate reprieve has been supplemented by a WA Labor commitment for Stamp Duty relief for first home buyers and those buying into multi residential projects, a move welcomed by the property industry today.
“While mortgage holders will no doubt be happy with the decision today by the Reserve Bank to cut the official cash rate, those still looking to get their foot on the property ladder may find it a little easier after today’s state election commitment announcement regarding Stamp Duty,” UDIA WA CEO Tanya Steinbeck said.
If re-elected, WA Labor has committed to raise the property price threshold for a stamp duty exemption for first homebuyers of established properties up to $500,000, and lift the threshold when the discounted rate applies, from $600,000 to $700,000 in metro Perth and $750,000 in regional WA.
Stamp duty changes have also been promised for land purchases for new homes, lifting the property price threshold from $300,000 to $350,000 and raising the discounted rate from $400,000 to $450,000.
“This is great news for first home buyers, given the rising median price of housing in Perth and the regions,” Ms Steinbeck said. “It is critical that support is provided to those that need it most, in order to ensure more people can achieve the dream of home ownership, and the long term security that it provides.”
“These changes will save first home buyers tens of thousands of dollars, depending on the type of property they choose to purchase,” Ms Steinbeck said.
“Perth has long been considered an affordable place to buy for many home buyers, but we know that mantle is slipping, and we need to ensure that people are supported into accommodation that suits their needs and budgets,” Ms Steinbeck said.
Another much needed boost to apartments and townhomes
Importantly, and directly based on UDIA WA advocacy, WA Labor has also committed to a $20.8m investment to expand the current stamp duty exemptions for new homes purchased off-the-plan and under construction – the thresholds, which are on a sliding scale, will be lifted by $100,000 and the exemptions extended to include townhomes as well as apartments.
“Today’s announcement with respect to stamp duty exemptions, directly responds to UDIA WA’s advocacy, and represents another important commitment by WA Labor to continue to tackle WA’s housing affordability and supply challenges, including by boosting the viability of infill development,” Ms Steinbeck said.
“Again, buyers would save in the tens of thousands of dollars if they take this opportunity,” Ms Steinbeck said.
“It is essential Government, at all levels, continues to pull all the levers to facilitate increased supply and housing choice,” Ms Steinbeck said.
“This is about keeping the cost of buying a home down, and enabling more people to choose a home that suits their individual households needs.”
“To further support apartment project feasibility, UDIA WA has recommended as part of our ongoing State Election Campaign, the expansion of the Infrastructure Development Fund (IDF) into an Infill Development Catalyst Fund to assist in making more apartment projects financially feasible,” Ms Steinbeck said.
“This should allow reimbursement of a range of statutory fees and charges, broader than headworks, and would assist in getting a greater diversity of projects, including more affordable apartments, into the market.”