Government announced a major boost for home ownership yesterday by ending stamp duty on homes under $750,000 for first-time buyers.

And realtors believe the move, coupled with falling house prices, mean it's an ideal time to buy after years of high prices scaring people away from the housing market.

The cuts in stamp duty mean savings of up to $24,000 for those buying just below the $750,000 cut-off limit.

Government also pledged that its long awaited interest-free down payment loans would soon surface although details were light.

Reacting to the Budget yesterday Buddy Rego, President and Owner of Rego Sotheby's International Realty, said: "We applaud Government's decision to stimulate home ownership on behalf of Bermudians first-time home buyers.

"Any steps Government can take to help stimulate home ownership are positive and we believe these steps absolutely are."

He said first-time interest-free financing and stamp duty cuts were significant and exciting. "This is an excellent time to purchase real estate, particularly for the first time homebuyer.

"There is a fair amount of inventory, particularly in the condominium market, and this creates competition for value.

"These initiatives not only help buyers but also sellers who are in a realistic price point and who are truly motivated to sell.

"We see these as important valuable initiatives to help all Bermudians and the economy."

During her Budget speech Finance Minister Paula Cox said the interest-free loans initiative, announced in the 2008 Throne Speech, for qualified Bermudians who wish to become first-time homeowners will be implemented this fiscal year.

No further details were given, despite requests to the Minister of Labour, Home Affairs and Housing although a spokeswoman said further details on housing would be unveiled at a press conference next week.

In her statement Ms Cox said the original concept had been modified but the plan gave Government an opportunity to take another giant step in providing opportunities for families to "own a piece of the rock".

And Ms Cox hopes the stamp duty cut will not only make home-ownership for young families both more achievable and more affordable but would stimulate more renovation work on smaller properties with the expectation of a likely sale.

She said: "This stamp duty concession represents the continuation of tax policy that has been both fair and reasonable to the community at large and to young families and individuals in particular.

"Seniors have benefited from the exemption of land tax on the home that they occupy.

"Families have benefited from the specific tax exemption for the primary family homestead as well as the customs duty concession on affordable housing schemes with pre-fixed sales prices below $750,000.

"Following on last year's restructuring of stamp duty in this area, the proposed concession provides a further boost to young persons and other individuals or families seeking to secure their first 'piece of the rock'."

Stamp duty is generally calculated at:

The first tier – up to $100,000 x two percent = $2,000

The second tier – between $101,000 to $500,000 x three percent = $11,970

The third tier – between $501,000 — $1,000,000 x four percent = $9,920