With the recent announcement of the Victorian State Budget, many home buyers are anxious as to how they will be affected. The Victorian Government seems to have taken notice of the sluggish property market, and as a result has changed the way in which they will be assisting first home buyers, so that more people benefit.
Good news for First Home Buyers
The First Home Buyers Grant of $7,000 still remains available for all those buying their first home for $750,000 or less. Currently, this grant has no scheduled end date.
First home buyers can also benefit from the current 20% reduction on their stamp duty bill. For first home buyers looking for more affordable housing, this means a saving of $3,274 on the purchase of a $400,000 home and $4,994 on a $550,000 home. However, under the Government’s policy, the stamp duty reduction is not available for homes priced over $600,000.
The good news for home buyers is that the Government has also made a provision of $65m to fund further increases in stamp duty cuts for first home buyers. As of the 1st of January 2013, the cut to stamp duty will increase from 20% to 30%. The stamp duty cut will then increase another 10% to 40% on the 1st January 2014 and then to 50% on the 1st of September 2014.
Stamp Duty Savings
New Home Buyers not so lucky
From the 1st of July this year, the First Home Buyers Bonus for those purchasing new homes will no longer be available. This Bonus was introduced a few years ago to stimulate the building of new homes during the Global Financial Crisis. According to the Government, the Bonus has been successful in stimulating purchases of new homes, and thus has decided to remove the Bonus in favour of increasing stamp duty concessions for all home buyers. However, those buying a new home off the plan will still benefit from concessions to stamp duty.
There is other assistance available for different groups, including exemptions for deceased estates, family farms, young farmers and pensioners. Details on those programs and the exact criteria for the assistance for first home buyers can be found at www.sro.vic.gov.au.