Victorian first home buyers win again with stamp duty cuts
On Friday 03 March 2017, the Andrews Government in Victoria announced the doubling of the First Home Owners Grant to $20,000 for regional first home buyers in Victoria.
Today (Sunday the 5th of March 2017), Victorian Premier Daniel Andrews has released another media statement, this time in relation to Stamp Duty. Andrews media statement stated:
- From 1 July 2017, eligible first home buyers will no longer pay any Stamp Duty for any property purchased below $600,000. This exemption will apply to first home buyers purchasing Established Homes as well as those purchasing New Homes and will apply for all residential property types, including houses, townhouses and apartments.
- Eligible first home buyers purchasing their first home (established or new) between $600,000 and $750,000 will receive a Stamp Duty concession (discount) based on a ‘sliding scale’ to be set.
- Similar to WA’s Keystart program, the VIC Government is also set to announce their own ‘HomesVic” program from 01 Jan 2018 (see below for more details on this program)
Finally, the Victorian Government has announced greater incentives for established first home buyers
First home buyers who purchase an established home for $600,000 under the new scheme will save approximately $15,535 in stamp duty costs under the newly announced scheme.
FHBA co-founder Daniel Cohen said FHBA finds it encouraging that the Victorian Government is admitting Victoria is facing a housing affordability crisis and acting on it before it gets any worse. “It is definitely a measure that will help a greater number of first home buyers get into the market as saving for the inefficient tax of Stamp Duty is one of the biggest hurdles first home buyers face.”
The “HomesVic” Program
A $50 million pilot program will also give about 400 people the chance to co-purchase a dwelling with the government, which will offer to take an equity share of up to 25% for each property. This reduces the deposit requirements for first home buyers – mostly benefitting those who are currently renting.
The program will begin on 1 January 2018, aimed at helping couples earning up to $95,000 and singles earning up to $75,000. Buyers will need a 5% deposit to be eligible, and when the property is sold, the government will recover its 25% share of the property.
More details on this program will be released closer to the 1 January 2018 launch.
It’s not just metropolitan first home buyers who will benefit from the new measures announced
Regional first home buyers set to be the biggest winners
On Friday the 3rd of March, the government announced the doubling of the FHOG for regional Victorians to $20,000
With all property incentives taken into account, the biggest overall winners will be Victoria’s regional first home buyers who buy a newly built home for about $650,000. They will receive over $30,000 in Government incentives and grants from 01 July 2017. Fellow FHBA co-founder Taj Singh said “regional first home buyers are the big winners from these announcements. The Victorian Government has taken steps to not only benefit those first home buyers in the Melbourne metropolitan area but also the country first home buyers who have it just as hard, if not harder due to the lack of job opportunities in some regional town centres in Victoria.”
For more information on the grant increase for Victoria’s Regional first home buyers, please click here
How do you receive these benefits
Whilst the Stamp Duty exemptions will benefit first home buyers from 1 July 2017, if you are looking to take advantage of these concessions it is a good idea to start planning for it now. It can take first home buyers up to 6 months to complete the entire first home buying process.
At FHBA, we can assist you regardless of whether you are looking to buy an established or brand new home. If you have saved for a deposit or are nearly there, the first and most important step is to get a home loan pre-approval so you know exactly how much you can spend on your first home and what the deposit requirements are. Your credit qualified FHBA Coach will assist you with the application for the FHOG and Stamp duty concessions. Click below to book your complimentary consultation with an FHBA Coach:
First Home Buyers Australia
Disclaimer: FHBA recommends you should with a licensed professional about your circumstances to determine whether you meet the eligibility criteria for any Government assistance. FHBA does not recommend you make any financial, property or investment decision based solely on Government assistance.