The Victorian Government is set to abolish Stamp Duty for first home buyers purchasing property below $600,000 as of the July 1st this year.
This Stamp Duty discount also applies for purchases between $600,000 and $750,000 on a sliding scale on both new or established homes.
Please see table below;
Savings for first home buyers from duty abolition/concession
Source: State Revenue Office Victoria
Further to this, the government is introducing a 1% tax that will be imposed on vacant residential properties to encourage the owners of these properties to make them available either for rental or for purchase. The only exemptions to this new tax is if the property is a holiday home, deceased estate or if the owner is overseas. This is primarily designed to increase supply in the property market overall.
It is estimated that these new changes will assist over 25,000 Victorians purchase their first home. It’s a pretty exciting time for those who have been struggling to get onto that first rung of the property ladder. Now they have that opportunity to get into the market and start planning for their future.
But, these Stamp Duty savings will not be a major factor if there is a shortage of houses to buy. These changes make a lot of sense and will offer benefits for both buyers and sellers.
Now could be the right time to sell your home if you have been thinking of making a move. With increased buyer activity, due to these new Stamp Duty savings you could come out with an excellent result!