Victorian Stamp Duty changes for first homebuyers
The Victorian State Government has from the 1st of July, 2017, abolished Stamp Duty for first homebuyers who buy a property with a value less than $600,000 and is implementing a sliding scale of reduced stamp duty between $600,000-$750,000.
So, all first home-buyers with contract prices under $750,000 will have some reduction in Stamp Duty, if not be fully exempt. Sounds like good news.
In my opinion price rises by vendors, as a response to sudden increased demand, will eat up any benefit of this initiative for first home-buyers in the first few weeks of implementation. We could see property prices in the sub $750,000 price category rise in Victoria and even more heated activity in the sub $600,000 price range. Many experts agree as is evident by comments from industry leaders and analysts in the Australian Financial Review article dated 5th of March, 2017.
The exemption and concession are in addition to the First Home Owner Grant (FHOG) (for more information on the FHOG, see the FHOG Fact Sheet on www.sro.vic.gov.au
In an attempt to clarify the impact of Stamp Duty changes for those buying between 600,000 and $750,000 after 1/7/2017, we contacted the State Revenue Office who informed us that they have not finalised these amounts yet but they may look something like:
605K- 1,046
625K- 5,428
650K- 11,357
675K- 17,785
700K- 24,713
725K- 32,142
745K- 38,444
This is yet to be confirmed and may still be adjusted.
At Buyer Solutions, we have seen first home-buyer incentives stimulate the market prices in the past. This is a concern for us as professional property buyers in Melbourne and Victoria. We know that Vendors may see this as an opportunity to put their prices up for properties in the sub $750,000 price bracket and especially sub $600,000. It will be more important than ever after 1st of July, 2017 for first home-buyers to protect themselves from overpaying for a property.
We are here to help, so don’t hesitate to contact Buyer Solutions be email at info@buyersolutions.com.au or call + 81 6 9816 8555 to book a complimentary initial meeting.
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