For many first home buyers in Victoria, buying a home is becoming increasingly unattainable. With the current housing market conditions and prices continually on the rise, it’s no wonder why so many are feeling the pinch.
However, options are still available for those determined to climb the property ladder. It may require some extra saving and sacrifice, but owning your own home is still within reach.
How Can the Victorian Government Help
The Victorian Government has already established changes to help first-time home buyers. Here are some of these changes.
First Home Owner Grant
They have created a new Home Owner Grant, giving eligible first-time buyers a $10,000 grant to help purchase their homes.
Visit the application page on the State Revenue Office website to see if you are eligible for the First Home Owner Grant.
Reduced or Removed Stamp Duty in Victorian Government
The Victorian government offers a range of stamp duty concessions and exemptions for first-home buyers. These concessions can significantly reduce the amount of stamp duty payable on the purchase of a first home. This move was designed to boost the property market and make it more affordable for people to buy a home.
The changes mean that stamp duty will be abolished for properties worth up to $600,000 and reduced for properties worth up to $750,000. This will save buyers thousands of dollars on their purchases.
The stamp duty changes are part of a package of measures announced by the Victorian Government to improve housing affordability in the state. Other measures include a new first home buyer grant and changes to planning laws to make it easier to build new homes.
Victorian Homebuyer Fund Shared Equity Scheme
The Victorian Homebuyer Fund Shared Equity Scheme is a government initiative that offers first-time buyers the opportunity to buy a property with a deposit of as little as 5%.
The Victorian government will contribute up to 25% of the purchase price of a property if the buyer has a 5% deposit in exchange for an equivalent share of the property. This can reduce the mortgage amount, and the buyer will not have to pay for Lenders Mortgage Insurance.
For Defence Force Members: Exemption from Residency Requirements
Suppose you’re a member of the defence force (Australian Army, Air Force or Navy), either on leave or on duty, and are eligible to vote for Victorian elections. In that case, you may be exempt from the residency requirements for Australian citizenship.
Note that the exemption does not apply to Australian Public Service staff and reservists of the Australian Army, Air Force or Navy.
Buy Assist: Community Shared Equity Scheme
The Buy Assist program is a community-shared equity scheme that helps eligible first home buyers purchase a home at an affordable price.
Under the scheme, buyers can purchase a home with a deposit as low as 2% and without the need for lenders’ mortgage insurance. The property must be within the eligible postcodes and have a purchase price below the program limits.
Off-Plan Purchases: Changed Stamp Duty Concession
The Victorian Government has announced changes to the stamp duty concession for off-the-plan purchases.
Under these arrangements, the 50% concession will continue to apply where the dutiable value does not exceed $500,000. However, the concession will be reduced to 25% where the dutiable value exceeds $500,000 but does not exceed $750,000.
There will be no concession where the dutiable value exceeds $750,000.
The changes target the concession at first home buyers and investors purchasing off-the-plan properties valued at up to $750,000.
If you are considering purchasing an off-the-plan property, you should be aware of the changes to the stamp duty concession and factor this into your decision-making.
Conclusion
The Victorian government’s plan to build more social housing is a positive step in the right direction. This helps address the issue of housing affordability and provides more opportunities for first-time home buyers to enter the property market. The government’s commitment to this issue is commendable and will go a long way in helping to improve the lives of many Victorians.
If you’re in the business of selling real estate in Victoria, then you know that having an excellent copy is essential to your success. That’s where Maria Harris comes in. She provides real estate copywriting services that can help you create a compelling copy that will get results. Maria also understands the unique challenges of the real estate business. Let her help you create a copy that’s both accurate and effective. Contact Maria today to get started!