Are you a first home buyer? What do the new changes mean for you? Where should I be looking?
This is the opportunity first home buyers cannot miss.
The Andrews government has brought in two new reforms in the last week that changes everything for first home buyers. Both reforms are designed to assist first home buyers in Victoria to break into our property market. With Melbourne’s median house price now at a record high $795,477 and the median price for the Victoria at $515,000, these reforms will come as excellent news to those in the market for their first home.
The first major reform announced last week will affect regional first home buyers looking to build a new home. The reform will come into effect on July 1 this year and see the doubling of the first home owner grant from $10,000 to $20,000 for new homes valued up to $750,000 in an effort to push prices of regional areas down. The government expects that the increase would assist around 6,000 first home buyers. Further the new incentive is designed to increase the appeal of living outside of Melbourne for young families and promote the decentralisation of Victoria’s congested capital, as well as boosting local construction jobs and development.
Regional First Home buyers will be eligible for $20,000
The second exciting reform is the one that all first home buyers in Victoria have been waiting for. Stamp duty will no longer need to be paid on properties up to $600,000, both new and existing from July 1. Savings of approx. $15,535 on a $600,000 home and $9485 on a $450,000 home are estimated to benefit a current 25,000 people on the hunt for a home. Further, a concession will be applied to homes purchased between $600,000 and $750,000 on a sliding scale. The eligibility for the stamp duty exemptions and concessions is based on the purchaser being an owner occupier for at least 12 months. Unfortunately, if you are planning to purchase as an investment, this will not apply to you.
According to Australia’s leading property statistics group, Corelogic, 5 of the 10 best growth suburbs for under $550,000 in Australia are in Victoria. Clyde North, Plumpton, Ardeer, Avonsleigh and Diggers Rest are all featured in the top 10. These areas are perfect for first home buyers as they provide the opportunity to purchase land and build thus taking advantage of the existing first home owners grant for metropolitan new homes and the huge stamp duty savings now offered from July 1st 2017. If you are in the market for a house and land package in Clyde North, a much-anticipated new release of 450 in-demand blocks at the “New Bloom” will be coming soon. To register your details and receive information on the land releases click Here