Prior to the recent cuts, interest rates had not budged for 31 consecutive months, leaving many buyers waiting by the sidelines. Now, with the recent rate cuts injecting more confidence and activity into the property market, for those who have just responded to the rate cuts and are yet to secure finance, the chance of making use of the substantial stamp duty savings is dwindling fast. With the incentive presenting a saving in the tune of over $17,000 on property purchases of up to $500 000, it can be the deciding factor for first home timer buyers to make a purchase.
Australian Mortgage Options managing director Robert Projeski said, "For first time buyers that have held back due to the higher interest rates, there is only a small window of time left to arrange finance as well as find the right property and still benefit from the current stamp duty relief for existing dwellings, which is due to end on December 31st 2011.
"The state government offered the incentive to encourage first home buyers into the market. And, with the interest rate cuts motivating more first time purchasers, many will hasten to make use of the incentive as well. I personally appeal to the state government to consider extending the first home buyer stamp duty saving, in order to allow these buyers the time to make informed decisions in terms of property and finance, and not be forced to rush order to benefit from the stamp duty saving".
"With the Christmas holidays looming, it closes the time window even more, which could cause some first time buyers to forgo the opportunity of home ownership altogether, which is in my view somewhat defeating the purpose of the incentive. If the state government was really serious about increasing first time home ownership and boosting the property sector, it would extend its stamp duty initiative into the early part of the New Year", Projeski said.
Robert Projeski is a property finance expert and the founder of Australian Mortgage Options, winner of 9 industry awards including the lowest rate home loan for 3 years running and the Canstar/Cannex 5 star 'Best Value Home Loan' for 2011.
For more information, log onto www.amo.com.au
Australian Mortgage Options (AMO) was founded in 1998 and since then has helped thousands of Australians finance their home or investment property.
Prior to establishing the company, founder Robert Projeski worked in the banking industry and identified a number of ways in which he could improve a borrower’s financial position by restructuring home loan products.
Borrowers would then be able to pay off their mortgage sooner, minimise tax and create wealth. Mr Projeski presented his findings and recommendations to the executive board. While impressed with his proposal, they declined to proceed as it would benefit the borrower at the expense of the lender. They figured, that, if people paid their home loan off sooner, the lender would earn less money from interest and this would not benefit the bank especially in the short to medium term.
So, unperturbed, Mr Projeski left and AMO was born with the mission statement “we’ll show you what the others don’t want you to know”.
It is this philosophy that has driven the business to the forefront of the home loan market, resulting in multiple awards from Money Magazine, Cannex, Your Mortgage Magazine and Canstar. So you can rest easy and enjoy the rewards of working with one of Australia’s most trusted and awarded companies – AMO