Riverina real estate veteran Robert Cavallaro explained what the changes meant for first home buyers and the regional property market.

What exactly is stamp duty and why does the government charge it?

Stamp duty is essentially a tax on buying a property. It’s an enormous revenue raiser for the state government, particularly from Sydney. 

What sort of savings can a first home buyer expect from recent reforms? 

A first home buyer purchasing a $300,000 home is likely to save about $10,000. If you’re buying a new property, you also get a first owners grant. 

Do you think this change will be a big help to first home buyers? 

I think if it’s long-term is can help them a lot. But these things always have an end date, and this distorts the market. 

We are seeing people hold off at auctions, waiting for July 1. This can increase competition, pushing prices up and cancelling the benefits of concessions. 

Will the increased taxes for foreign investors purchasing property impact the area?

Foreign-born investors don’t make up a big share of the market, but as Sydney gets more expensive, foreign investors are pushed out to the regions. 

What advice do you have for first home buyers? 

To do your sums carefully. Remember the other expenses that come with purchases – rates, water, repairs. Also, interest rates are at historic lows, they will go up eventually and people should factor that in their budget.