Two schemes designed to encourage property ownership have now made buying your first home in Victoria easier and more attractive.
The State Government will provide $10,000 under the First Home Owners Grant to applicants who are planning to purchase a new property or one that is less than five years old. That figure doubles if you intend to live in regional Victoria.
The scheme can be combined with a promised $25,000 grant from the Federal Government for owners – including first-home buyers – to renovate an existing residence substantially. This is aimed at bolstering the construction industry amid the pandemic.
Several concessions and reductions may be available to reduce your stamp duty. This is a levy raised by the State Government based on the exchange of ownership from one party to another.
The amount of stamp duty will depend on the value of the property and whether you qualify for any exemptions. It’s fair to say these are quite complex. For example, while established homes are no longer eligible, you may be entitled to an exemption if that older home is valued at less than $600,000, or a partial concession if the home was bought for between $600,000 and $750,000 after July 1, 2017.
Exemptions and concessions are also available to those who buy an apartment off the plan, and young farmers purchasing their first property.
As your local real estate agent, I would be happy to help you find a property that could meet these criteria. Before you buy or build your first home, here are some essential facts you need to know.
- You can receive up to $10,000 under the Victorian First Home Owner Grant if your property is valued at no more than $750,000.
- If you are buying in regional Victoria, your grant doubles to $20,000 but the property being purchased must be less than five years old.
- You may be eligible for the grant even if you have already owned a property. However, that property must have been rented for the entire period of ownership and must have never been your place of primary residence.
- The property subject to the grant must be your primary residence for the following 12 months.
- Applicants must be a citizen or possess residence, and be 18 or older, although exemptions can apply. New Zealand citizens holding an s32 visa may also apply, but they have to be in Australia at the time of settlement.
- As a first home buyer, you will not have to pay stamp duty if the property is valued at less than $600,000.
- As a further incentive, if you spend up to $750,000 to purchase your new home, you will pay a levy only on the difference between $600,000 and your price – not on the full value.
- No benefit exists for a home bought for more than $750,000.