Initiatives for First Home Buyers
In an effort to address housing affordability, and potentially the political pressure around this topic at the moment; the Victorian State Government has drafted some new initiatives to help first home buyers get into the marketplace.
Let’s have a look at what they are: If you’re buying a property up to the value of $600,000, you will no longer pay stamp duty. If you’re buying a property between $600,000 and $750,000, you will pay a reduced stamp duty on a sliding scale.
Now, these initiatives kick in on 1st July 2017.
In addition to that, first homeowner’s grants in regional Victoria will increase from $10,000 to $20,000 for new builds only. Now that’s not a bad idea to stimulate construction and people thinking that moving to regional Victoria, given the housing affordability issues we currently have.
In addition to that, they’ve also done what, I think, is the best part of this policy announcement. And that is shared equity. So what we’re talking about here is helping 400 low-income earners, who may be struggling to save for a deposit while also paying rent, when getting into the property market. The government is going to buy up to 25% of the value of that property with the first home buyer buying the remaining portion. And then over time potentially buying the government out. Now I think that that’s a terrific incentive to help those low-income earners.
(Find out more on the Changes to the FHOG and Stamp Duty here). Also, a lot of mortgage brokers will be able to help you with the application piece around making sure that these stamp duty concessions are included in the settlement of the property. Or also if you’re eligible for a first home owner’s grant, that paperwork is also submitted on behalf of you when you work with a mortgage broker.