Buying your first home is a major financial decision so it’s important to understand your financial responsibilities and what help is available to you
Before you buy your first home, here are some essential facts you need to know.
1. You can receive $10,000 with the First Home Owner Grant (FHOG)
If you are buying or building a new home valued up to $750,000, you may be eligible for the FHOG. More details about the proposed changes to the FHOG for regional Victoria will be released as they become available.
2. You pay stamp duty on your purchase
When you buy your home, you’ll most likely have to pay land transfer duty (otherwise known as stamp duty). How much you pay depends on your property’s value, what you’re using it for, if you are a foreign purchaser, and whether you are eligible for any exemptions or concessions.
3. There are exemptions and concessions
You may be eligible for – and receive – more than one exemption, concession or reduction from stamp duty for your property. In Victoria, these include:
- Special exemption for Defence Forces – a newly announced exemption for our servicemen and women from the FHOG residence requirements
- First-home buyer duty reduction – a one-off duty reduction for a Principal Place of Residence valued up to $600,000
- Off-the-plan concession – a duty concession for an off-the-plan property, either as a land and building package, or as a refurbished lot
- Pensioner concession – a one-off duty exemption or concession for a new or established home valued up to $750,000
- Principal place of residence (PPR) concession – a duty concession for when a property you buy, valued up to $550,000, is intended as your primary home
- First-home owner with family exemption/concession – a one-off duty exemption or concession for properties valued at $200,000 or less
- Young farmer’s exemption/concession – a one-off duty exemption/concession for young farmers buying their first farmland property
Please refer to our comprehensive comparison table to understand the differences between our most common grants and concessions/benefits when buying your first home.
Victorian Government recent announcements
The Victorian Government has announced a number of proposed measures for housing. These include:
- FHOG increase to $20,000 for regional Victoria
- Abolishment of stamp duty for first-home buyers
- Changes to off-the-plan concessions
- Tax on vacant residential property
These changes have to be approved by the Victorian Parliament before they can begin. You should only rely on the exact detail of the changes once the legislation is passed. This is likely to be in June 2017.
Read the full article here : http://www.sro.vic.gov.au/first-home-owner