Considering purchasing your first home in Victoria? There are a number of changes being made to stamp duty measures and a new government initiative that could save you quite a substantial sum and help you purchase your first home.
HomesVic is a shared equity scheme being introduced from 1 January 2018 with an initial allocation of $50 million over two years. It is designed to assist those with low to moderate incomes purchase their own homes.
The Victorian Government aims to provide up to 25% equity for first home buyers with priority given to those looking to purchase in specific areas that will be announced next year. The home buyer will be required to have a 5% deposit and a mortgage for the remainder of the property’s value. The Government’s equity contribution allows the home buyer to avoid paying mortgage lenders insurance. The scheme will apply to the purchase of both new and existing homes.
The HomesVic pilot shared equity scheme will assist 400 first home buyers.
You can find the expression of interest form and more information here.
These stamp duty changes have been in place since the start of the 2017/18 financial year but it’s certainly important to make sure you’re up to date to make sure you’re using all the resources available to you.
If you’re looking at making a purchase on a property for the purposes of primary residence with a dutiable value of up to $600,000 you will not be required to pay stamp duty. Dutiable value is the price you pay for the property minus any deductions. Any properties between $600,000 and $750,000 will receive a concession on the stamp duty to have it drastically reduced. You do however need to be eligible for the First Home Owners Grant to take advantage of the stamp duty exemption or concession.
Table courtesy of the State Revenue Office, Victoria – http://www.sro.vic.gov.au/node/5814
These changes are certainly a step in the right direction allowing those who believed to have no chance move in and purchase a home for their family. Definitely get in and apply for HomesVic if it is something you may be able to utilise as the initial release is limited.