Melanie and Karl Edwards of Cedarwood Crescent chose Raymond Terrace for its quality of homes and the fact they only had to pay an up-front deposit of five per cent on their four bedroom, two bathroom home worth $326,000.

The couple, who has three children, sealed the deal late in December to take advantage of last-minute stamp duty savings for first home buyers which expired on January 1. Dowling Real Estate Raymond Terrace principal Craig Higgins said the couple saved $9890 on the stamp duty of their home, which all existing properties valued up to $500,000 were exempt from up to December 31.

He said despite the savings, there was not a lot of interest in first home owners chasing the expiring offer.

Combined with the first home owners grant of $7000, the couple made a saving of close to $17,000.

"We were pre-planning and panicking that we would not be able to make the deadline," Mrs Edwards said.

From January 1, exemption on stamp duty for existing houses does not apply, with the federal government hoping to encourage new construction of homes.

The First Home Plus Scheme offers a grant of $7000, but limits the stamp duty concession to home owners purchasing a new home or vacant land intended to be used as a site for a new home.