Good News For First Home Owners
Good News For First Home Owners
There is good news today for first home buyers with the Victorian Government announcing changes to the First Home Owner Grant and stamp duty.
The First Home Owner Grant will be boosted to $10,000 for newly constructed properties PLUS stamp duty concessions of 40 per cent brought forward for all first home owners. These changes will take effect 1 July 2013.
Sunday, 28 April 2013 The Victorian Coalition Government will support first home buyers and job creation in the housing construction industry by increasing grants for newly constructed homes and bringing forward a major cut in stamp duty, Treasurer Michael O’Brien announced today.
From 1 July 2013 the First Home Owner Grant will increase from $7,000 to $10,000 for newly constructed houses and apartments, including those built under a home building contract, built by an owner-builder, purchased off the plan or sold for the first time as a residential premise.
In addition, the Coalition Government is bringing forward stamp duty cuts of 40 per cent for all first home owners taking effect from 1 July 2013. The combination of a $10,000 First Home Owner Grant and 40 per cent stamp duty cut means that Victorians buying a newly constructed first home for $400,000 will save over $16,500.
“The Coalition Government wants to support Victorians who are saving to buy their first home. “Increasing the First Home Owner Grant on newly constructed properties and boosting the stamp duty concession will make the dreams of many young Victorians become a reality sooner,” Mr O’Brien said. “Today’s announcement will also create more jobs in the housing construction sector, a key part of our State’s economy.”
The First Home Owner Grant will increase from $7,000 to $10,000 for eligible newly constructed homes under $750,000 from 1 July 2013.
Stamp duty concessions for eligible first home owners (whether newly constructed or established homes) will increase to 40 per cent from 1 July 2013 for homes valued up to $600,000.
To offset the significant cost of these new measures, the current First Home Owner Grant for the purchase of established housing stock will conclude on 30 June 2013. This brings Victoria into line with New South Wales, Queensland and South Australia. However, Victorians purchasing an established property as a first home will be eligible for the new 40 per cent stamp duty concession from 1 July 2013.
“Targeting the grant to newly constructed homes – whether in regional Victoria, Melbourne’s growth corridors or new CBD apartments – will stimulate the economy and create jobs in the construction sector,” Mr O’Brien said. “These measures will promote more housing construction leading to more employment, greater housing supply and reduced residential price pressure for Victorian families”.
“The conclusion of the grant for purchasers of established housing will be offset by the new 40 per cent stamp duty concession available to all eligible first home owners,” Mr O’Brien said. From 1 July, a first home owner buying an established property for $450,000 will benefit from a 40per cent stamp duty concession worth $7,588. This offsets the $7,000 grant previously available. From 1 September 2014, all first home buyers (whether purchasing newly constructed or established homes) will benefit from a 50 per cent stamp duty concession.
“These reforms will boost jobs in our housing and construction industry and boost the level of new housing stock to take pressure off housing affordability, especially for young Victorians looking to buy their first home,” Mr O’Brien said. “Victoria has a large and growing population and this announcement demonstrates the Coalition Government’s determination to build for growth and strengthen Victoria’s economy”.