Incentives on offer as Waterloo developers battle government timelines to entice buyers
Developers of apartment projects in Sydney are offering handouts and concessions to encourage off-the-plan purchases from first-home buyers and investors following badly timed changes to NSW government handouts announced in the June budget.
At the time these changes were introduced Meriton boss Harry Triguboff lamented that they would kill off investors “while still not giving birth to the first-home buyers”.
In June NSW Treasurer Mike Baird announced a doubling of the existing first-home owners’ grant from $7,000 to $15,000 and also increased the threshold from $600,000 to $650,000.
However the grant only applies to those buying a new home and only kicks in on October 1.
It provided first-home buyers with up to $35,240 in government handouts when the $15,000 is added to up to $20,240 available in stamp duty concessions available for a 15-month period under the existing First Home-New Home scheme.
This scheme provides exemptions on transfer duty on new homes valued up to $550,000 (a maximum exemption of $20,240) and concessions on transfer duty for new homes valued between $550,000 and $650,000.
A first-home buyer purchasing an apartment valued at $550,000 before October 1 would be eligible to receive $27,240 – but would be eligible for $35,240 under the doubled first-home owners' grant handout.
Baird also introduced reduced incentives for investors and other non-first-home buyers, kicking in on July 1.
Since July 1 investors and other non-first-home buyers can apply for a $5,000 grant for new homes whether purchased off the plan or newly built, with a value up to $650,000. This replaced the previous far more generous NSW home builders' bonus scheme, which provided potential stamp duty saving of $22,490.
Here are six developers currently offering concessions on certain apartment projects:
$8,000 handout from CPM Realty for Ore Apartments
This developer is offering to top up the existing $7,000 first-home buyer grant to $15,000 for those who purchase off the plan in its Ore Apartments project on Amelia Street in Waterloo. One-bedroom apartments start from $495,000 and two-bedrooms from $599,000.
Secure for $5,000 now and still get $15,000 grant on October 1 at Clemton Park Village - Australand
Australand is offering first-home buyers the opportunity to purchase two-bedroom apartments in its Clemton Park Village near Campsie, 13 kilometres west of the CBD, with a deposit of $5,000 and delay exchanging of contracts to October 1 to receive the full $15,000 first-home-owners' grant. Two-bedroom apartments are priced from $498,000
No stamp duty offer from Becton on Divercity till end of August
To encourage investors who may have waivered following the July 1 changes, developer Becton is offering to pay the stamp duty on all one-bedroom apartments purchased in its Divercity project in Waterloo until the end of August. Prices start from $445,000.
No stamp duty offer from TMG till end of August on Genesis apartments
Similarly, developer TMG is offering to pay the stamp duty on all one-bedroom apartments in its Genesis apartments in Rosebery Park, six kilometres from the CBD, until the end of August. Prices start from $483,000.
Developer to pay stamp duty and $8,000 grant gap to first-home buyers at Allure in Dee Why
Qiantang Investment Group (QIG) and Joy City Property Development are charging no stamp duty on their joint apartment project Allure in Dee Why on Sydney's northern beaches for first-home buyers that make purchases under $550,000. In addition they will also ensure first-home buyers get the full $15,000 government handout by paying the extra $8,000 on settlement. Two-bedroom apartments start from just under $550,000.
Developer to pay $8,000 grant gap to first-home buyers at Australian Towers II
Developers Ecove and SOPA (Sydney Olympic Park Authority) are offering to match the extra $8,000 that first-home buyers will receive from October 1 as part of the $15,000 handout in its 25-storey tower – ATII – in Sydney Olympic Park in Parramatta. The incentive applies to first-home buyers only. One bedroom apartments start from $450,000 and two-bedrooms from $585,000.
A Sun Herald report that Link in Zetland, being developed by Tripod International and being marketed by Ian Bennett from Colliers International, was incentivising first-home buyers or investors with a special August offer has been dismissed as inaccurate.
Bennett says the developer is offering its standard $5,000 to exchange on Link apartments, with the remaining 10% deposit required within 14 days.