With the news this week that the stamp duty has been reduced to a maximum of $10,000 for first home buyers, Abode New Homes have cut through some of the confusion and produced a useful summary on buying established versus building.
What is clear is that the new rules do not go far enough to help first home buyers hoping to buy established, as the benefits of building a new home still far outweigh that of buying established.
On the plus side, you could be in your first home sooner if you buy established, but only if you have a substantial deposit saved up. The fact you can actually build a new home with 100% finance, requiring no deposit, is a major bonus for most buyers. A report shows that 57% of first home buyers are in their 30’s or 40’s, but even so it is still a struggle to come up a 20% deposit, often equating to $90,000 or more.
This is why Abode New Homes have set up and had so much success with www.myfirsthomenow.com.au, which allows you to see if you qualify for the 100% finance.
Add on the fact that if you buy established you also miss out on the first home owners grant of $26,000 and the stamp duty you pay is substantially less.
The icing on the cake is that you end up with a brand new home, designed to suit your needs and fully guaranteed.
Justin Gill, the Managing Director commented, ”It will be a while before it is a level playing field. The odds are still really stacked in the favour of anyone wanting to build rather than buy established”