Revealed: Hidden Cost Shatters First Buyer Dream

The federal government’s 5% deposit plan is a game-changer as a first-time home buyer.

But behind the big names is the real affordability killer – stamp duty.

This “hidden tax” is bragging about budgets, exhausting savings, and locking thousands of people out of the market.

In Sydney, the first household buyer who needs a $75,000 deposit required for savings may drop to nearly $140,000 once stamp duty is included.

In Melbourne, the $47,500 deposit nearly doubled to around $100,000, while buyers in Brisbane and Adelaide face an additional $30,000-40,000 unless they build new properties.

“Everyone cheers for the 5% deposit plan – yes, it’s a positive step,” said Ami Reynolds, director of brokers.
“But when you look at the actual numbers, stamp duty is a hidden blast budget and keeps people locked in the market.”

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The 5% deposit plan is designed to help, but the “hidden tax” is quietly boasting about the budget and keeping the first buyer out of the market.

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The cost of stamp duty has risen sharply over the past decade.

The first resident buyer who once paid $15,000 to $20,000 is now staring at the bill double or triple, while wages are not keeping pace with real estate prices.

Ms Reynolds said: “Stamp duty has taken into account the real deal from the extra consideration.”

“Saving 5% of deposits is one thing, but it is a structural affordability issue when the government asks buyers to add another $30,000 to $60,000 to pay taxes.”

Experts also warn that “stent creep” is exacerbating the problem.

Even in New South Wales, stamp duty thresholds have been indexed since 2019, savings reach only $6,000 to $8,000, a million dollars in property – a small dent when buyers face bills of up to $60,000.

Kiana Solakovski and Kristian Radosavljevic recently purchased an apartment in Carlton after a long search. Image: Richard Dobson

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While some states offer offers – such as South Australia and Queensland, providing adequate relief for new buildings, while New South Wales and Victoria offer exemptions at lower prices, those gains disappear once property prices rise, once property prices rise by $750,000 to $800,000.

“Buyers of the first family don’t dream of unplanned apartments or home packages on the edge – homes they want to build in the neighborhoods they know,” Ms Reynolds said.

“The stamp duty on these properties is a silence barrier that no government plan is rightly addressed.”