Stamp duty slashed in Victoria
Buying a property often comes with many additional fees, such as conveyancing and title transfers. One of the bigger fees involved in buying a home is stamp duty, which can be a barrier for many.
However, a new Victorian government scheme this month is set to make it much easier for first time home buyers to get into the market.
Stamp duty cut in half
Victoria Treasurer Michael O'Brien has announced an increase in stamp duty concessions for first home buyers, which will now rise from 40 per cent to 50 per cent. This should see $197 million in savings for first home buyers overall. Previous concessions have already helped nearly 60,000 Victorians save thousands when buying their first home.
Mr O'Brien noted that the state government expects about 26,000 Victorians to benefit from this concession in the next year alone, making home ownership much more affordable. He also expects that this increase in first home buyers will spur the construction industry forward, creating even more dwellings for house hunters.
If you are a first home buyer who qualifies for the concession, you could save as much as $15,535 of stamp duty on homes valued up to $600,000.
But that's not all...
In addition to the stamp duty concessions, the Victorian Government is also providing a first home owner grant (FHOG) of up to $10,000 for new home constructions. Mr O'Brien notes that from September 1, this means new home owners could qualify for more than $25,000 of grants. He adds that last year Victoria funded more first home buyers than anywhere else in Australia.
HIA on board
In their recent release on home building strength, the Housing Industry Association noted that while stamp duty could be just one part of the fee system for new homes, more needed to be done. HIA senior economist Shane Garrett says unburdening the industry of fees like this would help foster a continued supply of affordable housing.
Anyone who has been pondering buying their first home should be thrilled by this news - stamp duty can be significant, and paying less means you can focus on home loan deposits and saving for the home itself. With home building on the rise and this increase in first home buyer incentives, now is a great time to contact a property expert to see what is available to you.