How are Victorian property buyers better off from the Budget?
Home buyers stand to benefit in a number of ways from the changes announced in the State Budget on 24 November.
Less stamp duty
The Victorian Government has said it will waive up to 50 per cent of the stamp duty payable on the purchase of newly built or off-the-plan residential properties, and up to 25 per cent of the stamp duty on existing residential properties, in each case on homes valued at up to $1 million.1
The contracts must be signed between 25 November 2020 and 30 June 2021. No further details about this incentive have been revealed to date, however, keep an eye on the government website for updates.
Existing concessions remain
Don’t worry, this new duty waiver is in addition to the existing concessions available – the first home buyer duty concession and the PPR concession. That is, first home buyers who are eligible to receive a concession on their duty (for homes valued between $600,001 and $750,000), and home buyers eligible to receive the PPR duty concession (for homes valued up to $550,000), will have the new duty waiver applied to their remaining stamp duty, after these existing concessions are applied.
More options for First Home Buyers
First home buyers have two more reasons to be excited – the new Victorian Homebuyer Fund and the extension to the First Home Owner Grant.
To encourage more Victorians to purchase their first home, the government plans to spend $500 million on their Victorian Homebuyer Fund. This fund will contribute to the purchase price of a property in exchange for a proportionate equity interest in the property. The contribution is available for first home buyers purchasing a new or established home and will reduce the size of the deposit required, allowing them to get into the property market sooner.
Additionally, the $20,000 First Home Owner Grant for the purchase of a new home in regional Victoria, will be extended for contracts dated up until 30 June 2021.
After a very difficult 2020 for Victorians, this should offer some relief for those considering a new home purchase. You can find more details about these incentives here.
SOURCES: 1https://www.premier.vic.gov.au/giving-business-tax-break-create-jobs
