Real Estate agent says Labor’s pledge to provide stamp duty relief may help some first Kimberley home buyers

A Kununurra real estate agent said cutting stamp duty for first homebuyers on purchases up to $500,000 may help them buy a slightly better house but it won’t bring a lot of additional properties within reach. Premier Roger Cook announced on Tuesday that a re-elected Labor Government would raise the stamp duty exemption threshold for first homebuyer purchases of established properties from $450,000 to $500,000. That would save a first homebuyers $18,000 on a $500,000 house. Discounted rates on stamp duty would apply for properties up to $750,000 in regional WA. Premier Roger Cook’s promise — which is less than the Liberal pledge to lift the exemption to $550,000 — came just minutes after the Reserve Bank of Australia announced it was cutting rates for the first time in nearly five years. Kimberley First National Real Estate director licensee Brad Williams said raising the stamp duty exemption threshold was a good thing for first homebuyers in regional areas. “Finding suitable options under $450,000 can sometimes be difficult for first homebuyers, so this will be very welcome assistance I’m sure,” he said. According to the Real Estate Institute of WA website there are 10 established homes for sale in Kununurra for under $500,000 that would be eligible for a first homebuyers to purchase under the scheme. Mr Williams said phasing the benefit out to a higher threshold would help some first home buyers also. “In the past the entire benefit was lost once $600,000 was exceeded. At least now, first homebuyers still save over $10,000 on their stamp duty,” he said. The exemption threshold for stamp duty on land purchase had also been lifted for first homebuyers from $300,000 to $350,000 That would mean a first homebuyer would save $11,000 on the land purchase as well as receive a $10,000 First Home Owner Grant for the construction of the house. However, slashing stamp duty might still not be enough to encourage people to build their first home in the Kimberley as labour shortages and remote building costs mean a house is far more expensive to build in the north west than its market value. Mr Cook said the $110 million package is expected to benefit 22,000 WA first home buyers over four years. Property Council WA executive director Nicola Brischetto called Labor’s promise to lift the threshold for land purchases was “sensible and balanced”. The State election will be held on March 8.