First-home buyers are set to save thousands of dollars as part of sweeping stamp duty changes announced by the Victorian State Government this week to help people trying to enter the property market.
From July 1, the much-maligned state property tax will be axed for any first-home buyer in Victoria whose property costs less than $600,000. There will also be stamp duty discounts for properties worth between $600,000 and $750,000 - regardless of whether they are new or existing.
According to the Real Estate Institute of Australia, 19.3 percent of property buyers in Victoria last year were first-home buyers, compared to 14.3 percent nationally. The new stamp duty changes will benefit around 25,000 Victorians a year, saving them on average an extra $8,000 when purchasing their first home.
The $10,000 first-home owner grant is also available for anyone who buys a newly constructed property in Melbourne for under $600,000. Homeowner grants for those buying in regional Victoria have been doubled to $20,000. Conversely the Government will also remove off-the-plan stamp duty concessions on investment properties. The off-the-plan stamp duty concession will now be available solely for those who intend to live in the property or who are eligible for the first-home buyer stamp duty concession.
Lucas Director Chris Henson says these changes will help many people break into the market, “given the cost of property and the rising cost of living, the upfront costs of buying, including having money for a deposit, stamp duty and legal fees, quickly add up. Most of our first-home buyers now have to save for longer before buying, so a saving of thousands of dollars will help them be able to buy sooner.”
To find out more how these changes will benefit you or for assistance with purchasing your first home, contact your local property experts on 9091 1400.