First home buyers could shave up to three years off their property purchase plans with the removal of stamp duty in New South Wales, according to new research.
Gateway Bank conducted the research, which found more than six in 10 first home buyers — 63 per cent — said that the abolition of stamp duty would mean they could get a foot on the property ladder earlier than expected.
And it’s by a sizeable time period, with the average first home buyer expecting to speed up their first purchase by 20 months, on average.
According to the findings, more than one in four (27 per cent) first home buyers expect to fast-track their purchasing decision by two years, while a further 24 per cent believe the scrapping of stamp duty could bring their purchase forward by three years.
Nearly one in five (18 per cent) says they could bring forward their purchase of a property by six months, while almost one-third (31 per cent) expect they could shave one year off their property plans.
While the research was completed prior to this week’s NSW state budget announcement, it included 700 Australians who intend to purchase their first property within the next four years.
Gateway Bank also asked participants what the biggest obstacle is to their property purchase, with 32 per cent of respondents considering stamp duty and related fees as “too high” — making it one of the top three barriers preventing Australians from owning a home.
Weighing in on the findings, Gateway Bank CEO Lexi Airey said “stamp duty is a significant cost when buying a property, and can add years to the home ownership plans of first home buyers”.
She believes many first home buyers would be encouraged by any measure that provides full or part relief from this upfront, one-off cost.
“The proposed move to a new system stands to significantly fast-track the time to home ownership for first home buyers and, when combined with current government schemes, provides a range of support measures for those looking to get their foot on the property ladder,” she commented.
“This will be particularly welcome news for many Australians who have had to utilise their deposit savings during the COVID-19 pandemic.”