ACT’s Professional Advantage: Save $70,000+ in Australia’s Most Stable Market
The Australian Capital Territory offers first home buyers a unique combination of Australia's most stable employment market and strategic government...
South Australia has become the nation’s most generous destination for new home buyers, offering a revolutionary combination that could save first home buyers over $90,000. The expanded First Home Guarantee (effective October 1st, 2025) combined with South Australia’s groundbreaking unlimited stamp duty exemption for new homes creates opportunities that simply don’t exist anywhere else in Australia.
As Jane Slack-Smith, Director of Investors Choice Mortgages and twice-winner of Australian Mortgage Broker of the Year, notes: “South Australia’s focus on new homes creates a clear strategic advantage. While other states offer partial benefits, SA’s unlimited stamp duty exemption for new homes combined with federal support means our South Australian clients often achieve the highest total savings in the country.”
South Australia has taken a fundamentally different approach to first home buyer support, focusing heavily on incentivising new construction. This strategy supports the building industry, increases housing supply, and provides maximum benefits to first home buyers willing to build new.
The revolutionary benefits include unlimited stamp duty exemption (no price cap), $15,000 First Home Owner Grant (highest for new homes under $650,000), federal FHG support (5% deposit and no LMI up to $900,000), and clear advantage for new-build buyers.
“New homes” in SA includes newly built homes (never lived in), off-the-plan purchases, house and land packages, and vacant land with building contracts. This opens access to both established suburbs with new construction and emerging growth areas.
Expanded First Home Guarantee Benefits:
First Home Owner Grant – $15,000:
Revolutionary Stamp Duty Relief:
Property: $850,000 new home in Mitcham/Unley area
Traditional Approach:
20% deposit ($170,000), stamp duty ($38,330), LMI ($28,000) = Total upfront: $236,330
Strategic New Home Approach:
5% deposit ($42,500), stamp duty ($0), LMI ($0) = Net upfront cost: $42,500
Total savings: $193,830
Property: $620,000 new home in Mount Barker/Gawler
Strategic Approach:
5% deposit ($31,000), FHOG (-$15,000), stamp duty ($0), LMI ($0) = Net upfront cost: $16,000
Total savings: $150,330
Property: $1,200,000 new home (non-FHG finance)
New Home Approach: 10% deposit ($120,000), stamp duty ($0 – unlimited exemption), LMI ($25,000 if not using FHG) = Net upfront: $145,000
Stamp duty savings alone: $54,330
Adelaide allows new construction within established suburbs: Unley/Mitcham (prestigious townhouse developments), Burnside/Rosslyn Park (high-value custom builds), Tea Tree Gully (family-friendly estates), and Salisbury/Parafield (affordable new construction). Benefits include access to established amenities, premium locations without established home premiums, and modern energy efficiency.
Northern Growth: Gawler/Gawler East (major estates), Angle Vale/Virginia (emerging development), Munno Para/Smithfield Plains (established growth).
Southern Growth: Mount Barker/Nairne (hills lifestyle), Aldinga Beach/Sellicks Beach (coastal growth), Morphett Vale/Hackham (infill opportunities).
Investment fundamentals include government infrastructure investment, transport connectivity, employment hub development, and population growth exceeding 5% annually.
Adelaide Hills opportunities include Mount Barker (major growth centre), Stirling/Crafers (premium lifestyle), and Hahndorf/Lobethal (tourist region). Coastal developments include Aldinga Beach (master-planned communities), Moana/Seaford (coastal estates), and Victor Harbor (lifestyle developments).
Established Volume Builders (Metricon, Fairmont, Weeks) offer competitive pricing, proven designs, and faster construction, but with limited customisation. Boutique Custom Builders provide unique design, quality focus, and local knowledge, but with higher costs and longer timelines.
Due diligence includes building licence verification, previous work inspection, contract terms review, and fixed price arrangements.
October 1, 2025: Expanded First Home Guarantee launches with unlimited places. SA stamp duty exemption continues indefinitely for new homes. Construction timelines typically 6-12 months from contract to completion.
Optimal Timeline:
Phase 1 (September-October 2025) – secure pre-approval, research builders, attend displays.
Phase 2 (November 2025-Mid 2026) – finalise contracts, coordinate progress payments, monitor construction.
Phase 3 (2026) – practical completion, settlement, residency establishment.
Strong population growth in growth corridors, limited rental stock in new developments, quality new homes commanding premium rents, and strong interstate migration create ideal conditions.
New Home Rental Advantages: Higher yields (modern features), lower maintenance costs, depreciation benefits, premium tenant attraction.
Typical Rental Yields: Growth Corridors (5-7%), Established Suburbs (4-5%), Hills/Lifestyle (4-5%), Coastal Areas (4-6%).
Building depreciation at 2.5% annually for 40 years, plant and equipment depreciation, total depreciation often exceeding $10,000 annually. Capital gains considerations include main residence exemption, pro-rata gains when converted, 50% CGT discount over 12 months, and strategic conversion timing.
Stage 1: New home strategy development with financial capacity analysis and growth corridor analysis.
Stage 2: Property and builder selection with estate selection and builder comparison.
Stage 3: Construction finance management with progress payment structuring and milestone monitoring.
Stage 4: Settlement and wealth building with practical completion and investment conversion planning.
Builder risk management includes licence verification, financial stability assessment, contract terms review, and progress payment protection. Timeline risk mitigation involves realistic completion expectations, alternative accommodation planning, progress monitoring, and contract penalty clauses. Quality protection includes independent inspections, building standards understanding, defect processes, and warranty coverage.
New estate development risk requires understanding infrastructure timing, population growth projections, competition analysis, and long-term plans. Oversupply risk management includes demand analysis, absorption rate understanding, growth corridor diversification, and unique selling proposition focus.
South Australia’s revolutionary new home benefits create the most generous first home buyer opportunity in Australian history. The unlimited stamp duty exemption for new homes, combined with the $15,000 grant and expanded federal guarantee, offers savings exceeding $90,000 while opening access to quality locations and modern, energy-efficient homes that build long-term wealth.
Jane Slack-Smith and the Investors Choice team specialise in SA’s new home opportunities, with established builder relationships and deep knowledge of growth corridors that deliver both immediate savings and long-term investment potential. The state’s lower property values and strong population growth create conditions where strategic buyers can build substantial wealth within 5-7 years.
Download your free First Home Buyer Guide and book your consultation with Jane Slack-Smith’s expert team to explore how to use SA’s powerful benefits in Adelaide’s rising growth areas.
Why does SA offer unlimited stamp duty exemption for new homes when other states don’t?
South Australia’s strategy focuses on stimulating new housing construction to address supply shortages while maximising first home buyer benefits. The unlimited exemption encourages buyers to build new rather than compete for limited established stock.
Can I access both the $15,000 grant and unlimited stamp duty exemption on the same property?
Yes, but only for new homes under $650,000. Properties above $650,000 still get the unlimited stamp duty exemption but not the grant. The stamp duty savings often exceed the grant value anyway – on a $700,000 new home, you save $26,330 in stamp duty.
What’s the best price range to maximise SA benefits?
The sweet spot is $600,000-$650,000 where you get both the $15,000 grant and substantial stamp duty savings, plus 5% deposit access through FHG. However, higher-value properties ($700,000-$900,000) may offer better long-term growth despite missing the grant.
How do I choose between established suburbs with new builds vs new growth estates?
Established suburbs offer proven amenities and capital growth but higher land costs. Growth estates provide larger blocks and newer infrastructure but require faith in future development. Consider lifestyle priorities, commute requirements, and investment timeframe.
What happens if my builder goes bankrupt during construction?
South Australia requires builders to have warranty insurance protecting you if the builder becomes insolvent. Your lender also has protections. However, choosing financially stable builders with good track records minimises this risk significantly.
Can I use the benefits for a luxury new home above $900,000?
The First Home Guarantee caps at $900,000, requiring alternative financing for higher values. However, you still get unlimited stamp duty exemption – on a $1.2M new home, that’s $54,330 in savings.
Should I buy off-the-plan or a completed new home?
Off-the-plan allows potential capital growth during construction and customisation options, but carries completion risk. Completed new homes offer immediate settlement and certainty but may have less growth potential. Your risk tolerance and timeline should guide this decision.
How important is location selection within new estates?
Extremely important for long-term value. Choose blocks near parks, avoid busy roads, prefer north-facing orientations, and understand future development plans. Premium locations within estates often outperform by 10-20% over time.
What’s the rental potential for new homes in SA growth corridors?
New homes in growth corridors typically achieve 5-7% gross rental yields, significantly higher than established properties. Modern features, energy efficiency, and limited rental stock create strong tenant demand and premium rents.
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