First home buyers in Wagga have welcomed plans to reduce upfront costs and make it easier for NSW residents to enter the property market.
The state government announced this week that first home buyers will have the option of swapping stamp duty for an annual property tax.
Under the reform, buyers would pay an annual levy of $400 plus a 0.3 per cent tax on the value of their land rather than stamp duty, potentially saving them thousands in upfront costs.
The NSW government also launched a shared equity scheme, which would allow some teachers, nurses, police officers and single parents buying their first home to pass off up to 40 per cent of the price to the government.
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"We came from Sydney and at first we were thinking that we don't need to panic for buying a house in Wagga and that it would be cheap and easy," Ms Bahonar said.
"In three months everything changed and the prices were so much higher ... we had to really decrease our desires.
"They have to do something and anything that makes it easier for others is a good thing."
Property values have skyrocketed across Wagga in recent years, locking many potential first home buyers out of the market entirely.
Fitzpatrick's Real Estate director Shaun Lowry said it recently cost about $250,000 for a "reasonable home in a reasonable area" but now that same home would cost $400,000.
"The price has really lifted and it definitely is pretty hard for first home buyers to get into the market now," he said.
Mr Lowry said the two announcements from the state government would probably help potential buyers get their foot in the door, but he warned residents to make sure they fully research the schemes.
"There's definitely benefits but I try to always encourage anyone entering these schemes to read about them and fully understand them," he said.
"Too many people get into these things and don't quite understand them fully which can come back to bite them."
The NSW government has allocated $728 million to the stamp duty reform over the next four years and about $780 million to the shared equity scheme.
Treasurer Matt Kean said the changes will help more first home buyers get their foot in the market.
"It will mean more NSW residents will get into their first home at an earlier age and achieve the great Australian dream of home ownership," he said.
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