Purchasing a first home is a wonderful investment that you and your family can enjoy for many years, but that doesn’t mean that it is an easy one to make. Going through the loan approval process and shelling out thousands of dollars isn’t easy, and stamp duty doesn’t make it any easier.
The process can be difficult enough for experienced, financially stable and mature buyers, but it can be even more difficult for those who have never purchased a home before. Many first-time home buyers dream of being able to invest in a home but have a difficult time doing so due to credit issues, financial concerns and more.
The government has made this a bit easier for first-time home buyers by eliminating the requirement for many of them to pay stamp duty. A lot of people think this is a bit unfair to those who have been purchasing homes for decades, but there are many reasons why it is a good idea for first-time home buyers to be given a bit of slack on their first purchases.
Although stamp duty is an essential tax for paying for necessary expenses, the government has figured out ways to allow first-time buyers to have a bit of a break. This helps many people who wouldn’t otherwise be able to purchase a home to finally get the loans of their dreams. Because of the exclusion from paying stamp duty, many individuals are now able to purchase homes for their families. This can be a dream come true for young couples and professionals who are just starting out in the world, and it makes it possible for many children to have stable homes when they might otherwise have to live in unstable rental situations.
This option also helps stimulate the economy. With more Australians becoming home owners, there is a greater market for home loans, home insurance and more. This can actually bring in much-needed revenue for these industries and can be beneficial in the long run.
It also makes it possible for home buyers to finally be able to compete. It can be difficult for younger people and those who aren’t in strong financial situations to keep up with older or more financially secure buyers, but the elimination of a stamp tax for many first-time buyers finally allows these individuals a chance to break into a market that they might have thought they would never be able to be a part of.