The Victorian government has announced that effective July 1st this year, first home buyers will no longer have to pay stamp duty on new and existing properties with a value of less than $600,000. Discounts will also be given to properties worth between $600,000 and $750,000. The exemptions will benefit some 25,000 first home buyers each year which would mean an estimated $8,000 worth of savings for new and existing homes.
In Australia, first homeowners can also take advantage of various grants from the government, at both the State and Federal level to help them get started in owning a property. Make sure you check out what you are entitled to within the state that you live. The Victorian Government has just proposed the scrapping of stamp duty for first home buyers in Victoria. Read more about that here.
The move to scrap the stamp duty is aimed at addressing the housing affordability issue in Australia. In addition to that, the Andrews Labor Government will also remove off-the-plan stamp duty concessions on investment properties. For this reason, only first home buyers and owner-occupiers will be eligible for a discounted rate of stamp duty.
Another important development is the introduction of the vacant residency property tax. This is aimed at stopping properties from being left “unreasonably vacant” particularly those in the inner and middle suburbs of Melbourne.
Here is a summary of the changes announced by the Victorian government:
- Stamp duty will not be required for first home buyers buying any property valued under $600,000.
- A discounted rate of stamp duty will apply, on a sliding scale, to any property purchased by a first home buyer valued between $600,001 and $750,000.
- The stamp duty concession for investors buying off-the-plan properties will be scrapped – only first home buyers and owner-occupiers will be eligible for a discounted rate of stamp duty.
- A vacant residential property tax will be introduced to prevent properties from being left “unreasonably vacant.”
Whilst this is great news for first home buyers, it means that the time to buy is now. We will shortly see an increase in first home buyer budgets right across Melbourne. That equals increased competition.
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