Stamp Duty Is Being Reduced in Victoria

By Janet Spencer

BREAKING NEWS – Stamp Duty Is Being Reduced in Victoria

Some great news for property buyers in Victoria with the government announcing in yesterday’s budget that stamp duty is being reduced in Victoria.

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The Victorian government’s recent budget announcement to lower stamp duty for property buyers is potentially good news for home buyers. On new builds and off the plan up to $1,000,000 purchase price, stamp duty will be halved and on existing property reduced by 25% until 30th June, 2021.

Buyer Solutions Buyers Agents are ready to advise you on how to buy well and not overpay in what could heat up the sub $1 million property market. Buyers need to be careful when any government stimulus is put in place and not overpay on the purchase price. In 2009/2010 when stimulus packages were put in place for first home buyers responding to the GFC, some overpaid and regretted not getting independent advice before buying. Don’t have buyer remorse, have professional advice before buying.

So, here are some dazzling numbers. On a property purchase of $950,000 the usual stamp duty is $52,070 for a first home buyer according to the State Revenue Office stamp duty calculator. After yesterday’s announcement and up until 30/6/2021 this will reduce to $26,035 a huge saving of $26,035. This is a huge incentive to cautiously enter the property market if you can access a loan and are currently working.

More details will be released shortly on who will be eligible as little information around this was announced yesterday. At this point, I am waiting on clarification as to whether the stamp duty reduction only applies to home buyers or whether investors will benefit as well and I am keen to find out.

ABC news said that other initiatives were going to help buyers to reach their 20% deposit to buy homes but this is still not clear and I will update you as news comes to hand.

As a result of the COVID-19 Stage 4 lockdown of the real estate industrly for around 3 months in 2020, stamp duty revenue to the government is down around 26% for 2020, according to figures released on ABC News last night. So its interesting that Daniel Andrews and Tim Pallas have offered stimulus in this valuable revenue stream.

My experience from 2009/2010 when the first home buyer stimulus was offered to first home buyers was that the price point affected in the property market went “nuts” and many buyers overpaid. When buying in the next 7 months, don’t overpay or it defeats the purpose of the stamp duty reduction. All buyers are under emotional pressure when in the final stages of negotiation. Even after you have found your property and know you want to buy it, its not too late to employ independent advice from a qualified Buyers Agent. At Buyer Solutions Buyers Agents in Melbourne, we offer several services to property buyers.  You can locate your property and then ask us to do the prepurchase research, advise you and represent you at auction or the private negotiations.  Or, you can hire our Comprehensive Buying Service and attend to your work and social lives while we do everything to buy your property.

For independent advice on buying or selling real estate, contact Janet Spencer at Buyer Solutions +61 3 9816 8555 or email jspencer@buyersolutions.com.au

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