Labor's Help for Homes to give more first home buyers a chance in the market

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A Foley Labor Government will make the dream of buying your first home real again by introducing a new stamp duty deferral scheme for those entering the property market.

Labor’s Help for Homes plan would allow first home buyers to defer up-front stamp duty costs, instead paying stamp duty costs in affordable monthly instalments over five years.

This would allow individuals and couples working hard and saving for their first home to invest their money into a house deposit – not see their savings evaporate instantly on stamp duty charges.

The option to defer stamp duty would be available to all first home buyers purchasing property up to the value of $750,000.

More than 37,000 first home buyers would be eligible each year, which is more than 90 per cent of all first home buyers.

Under the Baird Liberal Government, the number of first home buyers entering the property market has slumped to a record low.

The Liberals have stripped away stamp duty exemptions and first home buyer grants, electing instead to give $5,000 to property speculators and overseas investors.

The typical first home buyer is now up to $25,000 worse off under Mike Baird’s Liberal Government than when Labor left office in 2011. The number of first home buyers gaining finance has slumped by 33 per cent since 2011.

Quotes attributable to Labor Leader, Luke Foley:

“Mike Baird and the Liberals have crushed the dreams of first home buyers.

“With no incentive or support, individuals and young couples working hard in Sydney just can’t get into the property market and buy their first home.

“Labor is determined to right this wrong, starting with a plan to defer stamp duty payments and allow them to be paid off in affordable monthly instalments over five years.

“Property across greater Sydney will continue to be in high demand. Labor will act to help hard working people achieve their dream of home ownership.

“The Premier is more interested in handing out grants to property speculators and overseas investors than getting people into their own home.”

Quotes attributable to Shadow Treasurer Michael Daley:

“Under Mike Baird’s watch, the number of first home buyers entering the market has slumped to the lowest level on record.

“The priorities of the Liberals are all wrong.

“Mike Baird rolls out the red carpet for property speculators and foreign investors, but cuts incentives and concessions for everyday working people who want to buy their first home.

“Labor’s plan to defer up-front stamp duty costs is an innovative, affordable and common-sense solution to winding back the damage done by the Liberals over the past four years.”

Key Facts

  • Help for Homes is a $60 million package fully costed by the Parliamentary Budget Office
  • The scheme would apply to all first home buyers in NSW up to the purchase value of $750,000
  • More than 37,000 first home buyers are expected to benefit from the policy each year
  • Stamp duty payments would be spread over five years – with affordable monthly payments
  • If the property is sold within five years, any outstanding stamp duty will be payable upon sale
  • The policy will commence 1 January 2016 and be administered by the Office of State Revenue