For those looking to buy their own home or an investment property in Victoria, we have prepared a list of First Home Buyer benefits and Investor Incentives available along with the summary of the eligibility criteria.
Victorians have access to incentives that can be combined, giving property buyers an incredible opportunity.
1 - First Home Owner Grant (FHOG)
Benefit: $10,000 Grant for those who buy or build a new home. For Regional Victoria, a Grant of $20,000 is available for contracts signed from 1 July 2017 to 30 June 2021.
Price Cap & Property Type: The contract price must be $750,000 or less. Newly built house, townhouse, apartment, unit or similar are entitled to the grant.
The definition of New Home has recently been updated. Currently, the First Home Buyer Grant in Victoria covers properties that “haven’t been previously sold as a place of residence, occupied as a home, or used for the provision of short -term accommodation, such as Airbnb.”
Eligibility Requirements: The grant is available for Australian citizens or permanent residents aged 18 or over who are willing to occupy the house as a Principal Place of residence for at least 12 months.
See full eligibility requirements: https://www.sro.vic.gov.au/fhogapply
2 – First Home Buyer Stamp Duty benefits
Benefit: This grant can lead to savings of up to $31,070.
Price Cap & Property Type: First Home Buyers can benefit from Full Stamp Duty Exemption in Victoria on properties up to $600,000.
From $600,001 to $750,000, home buyers are entitled to Stamp Duty Concessions, see example below:
Unlike FHOG, VIC Stamp Duty benefits apply to existing homes, as well as vacant land.
See full Eligibility Requirements: First Home Buyer Stamp Duty - Eligibility
To calculate your land transfer duty: Stamp Duty Calculator Victoria
3 – Reduced Stamp Duty
Announced in December 2020 by the State Government, the land transfer duty waiver is a temporary benefit valid for both investors and home buyers of residential properties in Victoria.
Benefit: For new properties, a 50% duty discount applies. For existing residential properties and vacant land, a 25% duty discount applies.
Price Cap & Property Type: New and established homes with a dutiable value up to $1 million. It includes home and land packages.
Key dates: The contract must be signed by 30th June 2021.
Eligibility Requirements: Investors and Home Buyers can avail the stamp duty reduction in Victoria, including foreign purchasers.
See full Eligibility Requirements: Reduced Stamp Duty - Eligibility
Why now
Interest Rates are the lowest in history and are expected to stay low for a long time, making home ownership a lot more affordable.
Responsible Lending laws to be axed. Simpler lending rules to come into effect in the coming months. These are one of the most significant reforms to credit rules and will help increase the flow of credit to households driving the demand upwards.
Australian Home Values Surged 2.1% higher in February, the highest single month increase in the last 17 years.
IN SUMMARY
Residential Property underpins Australia’s wealth, which is worth approx. 7.1 Trillion dollars. State and Federal Governments have taken measures since the beginning of the Pandemic to ensure there is roof over the head of Australians, there is protection for the values of properties and implemented programs to support the livelihood of millions.
The future of Australian property looks promising and will only get better once the international borders are open.
At SONI, we simplify property purchase with our experience and knowledge. Whether you are looking to buy your First Home, your First Investment Property or to build on to your existing Portfolio. Our team of experts are here to help create a personalised property strategy based on your situation and aspirations.
Reach out to us today if you are looking for the right partner that is going to be there with you every step of the way.
Book your free Consultation NOW at soniwealth.com.au/free