Major Housing Reforms Announced by the Victorian Government
Breaking into the housing market can be intimidating and expensive! However, the Victorian Government announced significant reforms regarding housing affordability for first-time buyers. This set to take effect on 1 July 2017. But what does this mean?! Let us break it down for you!
Increased First Home Owners Grant
First Home Buyers in Regional Victoria received great news. The First Home Owners Grant (FHOG) will increase from $10,000 to $20,000 for first-home buyers building new homes valued at up to $750,000. This increase not only enables regional Victorians to enter the housing market and establish themselves in their local communities. It also has the potential to boost local construction and development jobs. This is a huge win for regional Victoria.
Stamp duty changes
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 $750,000.
What is stamp duty?
When buying property in Australia, you must pay various fees and charges on top of the purchase price. One of the major costs is stamp duty, a tax set by each state or territory government that is legally payable within 30 days of settlement. The amount of stamp duty payable depends on the state or territory you live in, the purchase price of the property. And the type of property 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 on July 1, 2017. The Victorian Government has said that the exemption will benefit approximately 25,000 first home buyers every year. They will assist more Victorians in breaking into the housing market.
Looking Ahead of Housing Affordability Reforms
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 and 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 04 38 235 375, email office@gippsms.com.au, or drop into our office at 364 Raymond Street, Sale.