A new survey of conveyancers confirms that stamp duty relief in NSW has resulted in a sharp increase in the number of people looking to purchase their first home.
According to the Perfect Portal survey, 44.4 per cent of respondents confirmed that they have seen an increase since the relief package was introduced on 1 July.
Houses, not apartments, are still the preferred option for purchasers, with 61.5 per cent of respondents saying that people are purchasing housing while 38.5 per cent are purchasing apartments.
Interestingly, the results found that purchasers are not doing their homework before buying a property as respondents universally agreed that not having finance ready, not understanding the hidden costs of buying a house (particularly in relation to stamp duty) and not understanding a contract before signing are the most common mistakes people make when selling a house.
“In fact, I heard of a case recently when a vendor on the northern beaches in Sydney failed to read and understand the contract thoroughly and did not advise the conveyancer of a special levy in place until 2019 imposed by the body corporate for building works,” Perfect Portal chairman Stephen Wood said.
“As a result, the conveyancer could not negotiate with the buyers to take responsibility for this levy before the contract was signed and the vendor ended up paying an additional $20,000 for a levy even though they no longer owned the property.
“The reality is when it comes to contracts, no one can be too careful.”
[Related: Clients for life: First home buyers]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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