Anyone else looking forward to end of stamp duty concession for FHB's?

[Edge7]

Is anyone else looking forward to the end of the stamp duty concession for first home buyers?

I have been looking for my next IP over the past couple of months in my area in Western Sydney. I have noticed the average 3,1,1 house is advertised for about $40K more than they were a couple of months ago. I am sure that a lot of the price increase is due to the stamp duty concession for first home buyers.

Poor old FHB's are paying about $40K more for the privilege of saving circa $12K in stamp duty. I have decided to put my IP shopping on hold until the new year when the concession is finished. It will be interesting to see if less buying competition in the new year will result in house prices reverting back to the mean.

At least it is a good time to revalue and generate some more equity ready to be put to good use down the track.

 

[twobobsworth]

You might be standing in line with everyone else that has been holding off.

 

[Propertunity]

You might be standing in line with everyone else that has been holding off.

^ ^ ^ what he said.

I just sent an email to a client this morning, saying as much.

We will wait to see what happens next year when many FHBs exit the market, however, our feeling is that investors will move back in, in more numbers than there are already. This is for 2 reasons:
1. Many investors are waiting on the sidelines at the moment as they are not interested in competing with FHBs.
2. Properties are becoming more affordable as we have had 2 x interest rate drops in the last 2 months, but rental vacancies are still very tight and rents are still rising.

 

[vaughan]

Wouldn't it be funny if the rush of investors back into the market turns out to be bigger than the FHBs. LOL

I'm waiting too.