There’s more good news for Victorian first home buyers! The First Home Owner Grant (FHOG) is set to increase from $10,000 to $20,000 for buyers of regional property. Victoria’s state government recently announced the change, which will take effect from 1 July this year.
In light of housing affordability discouraging first home buyers nationwide, those in Victoria should be pretty happy with this latest development. Here’s what you need to know:
FHOG increase comes off the back of stamp duty changes
The doubling of the FHOG for regional buyers is just the latest measure the state government has implemented to make the property market more accessible to first home buyers.
Stamp duty will be scrapped for first home buyers in Victoria purchasing property under $600,000, replacing the existing 50 per cent stamp duty reduction.
Duty payable on a $600,000 home in Victoria is $31,070 – among the highest rates in the country. Abolishing this tax will mean you can put a lot more towards your home loan deposit.
What does the FHOG increase mean for you?
In a nutshell, eligible buyers will get $20,000 from the government to help with their first home purchase. In rural areas, you could own a property much sooner than expected and save yourself a heck of a lot in mortgage repayments. Median house values in regional Victoria are currently $377,000, according to Real Institute of Victoria data, while Melbourne’s sits at $826,000.
The Victorian government is certainly showing its willingness to support first home buyers.
To be eligible for the FHOG, you’ll need to purchase a home in regional Victoria (a full list of qualifying areas can be found on the Victorian State Revenue Office’s website). The grant applies only to homes valued up to $750,000. For homes worth more, the standard $10,000 grant will apply.
The Victorian Government is certainly showing its willingness to support first home buyers in entering the housing market. The changes to the FHOG still need to be approved by the Victorian Parliament, but you can certainly start getting excited!
What do you think of the latest changes to stamp duty and the FHOG in Victoria? We’d love to read your thoughts and comments below. If you’d like to talk about what these developments mean for you, why not have a chat to one of our friendly mortgage brokers?