Do governments give first-home buyers more money in NSW or ACT?

There is an age-old debate about whether buying in Queanbeyan is better than buying in Canberra and for first-home buyers, the decision is made even harder as affordable houses in both cities are snapped up almost as soon as they list, according to agents.

First-home buyers in the ACT and NSW already had existing state government schemes and exemptions available to them but when the federal government revealed its $25,000 HomeBuilder package, first-home buyers were swimming in pools of money.

When looking at the ACT, first-home buyers are exempt from paying stamp duty on any residential property which applies to new and established homes as well as vacant land, and at any price, so long as their annual household income is less than $160,000. 

However, in order to cover the costs of stamp duty abolition, the first-home owners grant of $7000 was scrapped.

Steve Lowe of Agent Team Belconnen said first-home buyers looking to purchase in the ACT were out in droves.

“This is their only opportunity to get their foot in the door and those incentives have boosted their budgets and given them a competitive advantage over somebody who isn’t eligible for those schemes,” Mr Lowe said.

“Saving this kind of money would usually take years so it is quite competitive for first-home buyers.”

Mr Lowe said the suburbs of Macgregor and Dunlop in the Belconnen region were a first-home buyer’s haven because houses ranged from $470,000 up to $820,000.

According to the Domain House Price Report for the March quarter, Canberra had a median house price of $779,050.

“Because those suburbs are generally not very old in comparison to Kambah in Tuggeranong, you can get quality brick veneer homes with three bedrooms, two bathrooms and double-car garage on a smaller parcel of land … they are quite desirable for first-home buyers at the moment,” Mr Lowe said.

Meanwhile, in NSW, first-home buyers have access to a $10,000 grant for new properties less than $600,000. 

There is also no stamp duty payable on properties under $650,000, or vacant land under $350,000, while properties between $650,000 to $800,000, or vacant land between $650,000 to $800,000 will receive a concessional rate of stamp duty.

Both ACT and NSW buyers are also eligible for the federal government’s First Home Loan Deposit Scheme where first-home buyers need as little as 5 per cent deposit, with the additional 15 per cent guaranteed. The scheme was renewed this month and only 10,000 spots are available.

Igor Srbinovski of Independent Queanbeyan said while NSW first-home buyers were cashed-up thanks to the state and federal government incentives available to them, the number of affordable homes was wearing thin.

“We certainly have a lot more first-home buyers now compared to the start of the year,” Mr Srbinovski said.

“At the start of this year, it was quite slow, there was a bit of surplus in terms of stock available and now those have dried up … we’re getting more inquiries on new properties and even vacant land.”

Mr Srbinovski said he’d seen a number of first-home buyers from the ACT look across the border towards Queanbeyan, Googong and South Jerrabomberra, not because of the incentives available to them, but because “you get more bang for your buck”.

“First-home buyers who are looking for more land are not looking at Throsby or Taylor, they are finding that Googong and Queanbeyan offer a better alternative,” he said.

According to the Domain House Price Report, Queanbeyan had a median house price of $620,000.

Mr Srbinovski noted first-home buyers had a typical budget up to $750,000, which is also the price cap for the cost of land and building a new house under the HomeBuilder scheme.

“I find that price has increased quite dramatically this year … before, we were dealing with first-home buyers with a price range of up to $500,000,” he said.

“But for what you can get across the border, from land, open spaces and on top of that, all these incentives and grants, buyers in NSW have it better.”

If you are an NSW first-home buyer and are eligible for the state and federal government grants, you can receive up to $35,000.

Whereas ACT first-home buyers who are eligible for the state and federal government grants will only receive $25,000, however, they do not need to pay stamp duty.