Breaking into the housing market can be an intimidating and expensive prospect!
Just this week the Victorian Government has announced major reforms in regards to housing affordability for first home owners, set to take effect on 1 July 2017. But what does this mean?! Let me break it down for you!
First Home Owners Grant
The first piece of good news is for First Home Buyers in Regional Victoria. The First Home Owners Grant (FHOG) is set to increase from $10,000 to $20,000 for first-home buyers building new homes, valued up to $750,000. This not only enables Regional Victorians to get into the market and establish themselves in their local communities, but it also has the potential to increase local construction and development jobs. This is a huge win for Regional Victoria.
The second bit of good news is that First Home Buyers will no longer have to pay Stamp Duty on established properties worth up to $600,000. Stamp Duty will then be scaled for properties up to $750k.
What is Stamp Duty?
When buying a property in Australia, you are required to pay varying fees and charges on top of the purchase price. One of the major costs is Stamp Duty which is a tax set by each state or territory government legally payable within 30 days of settlement. The amount of stamp duty payable is determined by the state or territory that you live in, the purchase price of the property and the type of property that you are buying. For example, currently Stamp Duty on a $600,000 property purchase in Victoria is $15,535 for First Home Buyers. With this enormous fee set to be abolished from 1 July 2017, the Victorian Government has said that the exemption will benefit approximately 25,000 first home buyers every year and will assist more Victorians to break into the property market.
With further details set to be released in the coming weeks, we would love the opportunity to sit down and chat with you about your needs and financial/property goals for 2017. Please give us a call, we would love to chat and answer any questions you may have!
Call 03 5143 0135 or 0438 235 375, email email@example.com or drop into our office at 364 Raymond Street, Sale.