You would have heard in the news today that the Victorian government has abolished stamp duty for first home owners.The plan is due to start in July Im actually very upset because i purchased a property in Jan that should have settled at the end of feb. My girlfriend and i are going to lose 15,000 in stamp duty. I can't believe my luck in this situation. Any ideas or help would be greatly appreciated
No Stamp Duty for Victorian First Home Buyers
PAOK11 on 05/03/2017 - 19:59
Last edited 05/03/2017 - 20:10
Last edited 05/03/2017 - 20:10
Comments
*for property values up to 600k, and proportioned for properties 600k-750k
for a property worth 750k would it be 0 stamp duty on the first 600k then 5% or so on the 150k? Please help Thanks.
Not sure how Vic works (or will work), but for ACT and NSW in these situations they would have a full exemption to 600k, then a sliding scale up to 750k. Meaning at just below $750k you get basically no discount.
Is it worth breaking the contract?
Yep you're probably ahead buying in January instead of July. If you bought a $585,000 house in January it would only need to increase by 2.5% in those 6 months. Considering yearly growth is at the 5-10% mark on average you're ahead buying in January!
Wow, thankyou. I never even considered looking at it that way.
I paid 500,000 so it would have to increase by $15,000 in 6 months which would be 3 percent
You would usually be forfeiting your 5 or 10% deposit if you default on a contract, so I am guessing no.
Plus the legislation will usually say the exemption/concession is not available to people who do a rescission and re-enter for the same property just to try and take advantage of the scheme.
I wouldn't worry OP, house prices will go up with the extra purchasing power come July.
Thankyou for this comment 😅
Write to daniel andrews tell hin how pissed you are. Life's a bitch, so start bitching, everyone else does. Frugal Rock can advise you..
Thank you I'm seriously considering writing a letter
My advice is to not waste your time writing to politicians, but equally, don't bottle up your emotions like RockyRaccoon does, or you will become a similar seething mess. The worst.
Dang. We paid like 42k in stamp duty for our first home I think. At least they're giving a hand to first home buyers. It's ridiculous the amount of competition from downsizers and investors in the market right now.
After reading the policies this morning I feel for home buyers, more policies that will inflate home prices and continue to help home owners and do nothing for aspiring buyers.
I know these policies are supposed to help, but most of the evidence I've read shows it does pretty much the opposite to help home buy affordability.
The 25% equity injection is sure to push up affordable housing.
I always suspect this first-home grant may not necessary save you money. I often suspect developers and sellers would increase the price by the same amount anyway….
House prices will always rise as long as demand exceeds supply. Cutting stamp duty is likely to increase demand wiping out any net saving. Governments should be using the stamp duty windfall to increase supply - release land, improve transport and comms infrastructure, incentify business to decentralise.
Still, I wonder how the millions of home owners would feel if their house values took a tumble.
This is great ……….except how will Victorians fund the shortfall in state revenue? Not sure how much stamp duty is collected per-annum from first home buyers but it must be a decent amount to be giving up.
With regards to changes, also note that they are scrapping the stamp duty benefit for off the plan purchases for investment properties and also taxing some of the vacant properties (every year??). So may may be that's what filling the gap of not charging the first home buyers the stamp duty. I am sure the govt has done their calculations ;-)
Merged from Victorian Stamp Duty Cuts - Effects on Prices?
I've seen the following thread announcing the stamp duty cuts in VIC from July 1st for first home buyers up to 600K: https://www.ozbargain.com.au/node/295470
HOWEVER my question is how do you see it affecting house prices in Victoria?
I've seen articles published by many organisations: AFR, the ABC, The Age all suggesting that this change will do little to make first home purchases more affordable and even potentially make them more expensive than before.
Their reasoning is that it will increase demand (more people in the market) however the supply is the same therefore prices go up.
This makes sense however not all buyers are first home buyers and sellers can't know who they're selling to (especially at auction)As some one currently on the market for a first home purchase it puts me in a complicated position, do I buy now if I find the right one or do I wait till July 1st to potentially save approx 10K however run the risk of the property than being 10K dearer then anyway.
How do you see it playing out?
Experience will likely echo the FHOG introduced by the Howard Government in that prices rise as a result.
Nothing can be done… No different to if they suddenly said stamp duty was increasing, then it's not like you'd be so annoyed you got in early ;)
WA has had that for a few years now btw :)