State Revenue Office Victoria has announced that in order to make first home buying more affordable, they are reducing the stamp duty from 50% discount to 100% discount (i.e. $0) if the purchase price is less than $600k.
They have also announced double amount of First Home Owner's Grant for building/buying a first home to live in the regional Victoria.
What do you guys think about it, and how will it impact the housing market in Victoria Pre/Post 1 July 2017?
How can you say that?
Out of 20 interested buyers on the inspection day of your property, probably only 5 would be eligible for stamp duty reduction…
Another 15 would be investor who wouldn't care for duty reduction anyway.
If only two of those five decide they want it, that's still enough to drive the price up.
Because it gives those 5 buyers that extra amount to spend with. Say it means you wont have to pay $20k upfront for stamp duty (idk what the exact figures are) then it means you have $20k extra that you would not have previously had to bid for the house. (unless the house is over 600k)
In the longer term though, it will mean FHOs will have to save up for less amount of time and the temporary inflation from this reduction will start to reduce over time
The changes to the off the plan concession could have a bigger impact. Portfolio investors make up 20% of transactions and around half favour newly built high rise apartments. As part of the changes these buyers can no longer access stamp duty concessions. Shifting the large numbers of apartments in Melbourne being constructed is going to get harder after July 1.
Source: http://www.digitalfinanceanalytics.com/blog/the-property-imp…, pages 32-33
Why would that be a bad thing though (apart from already planned apartments)? It encourages people to buy properties to live in, rather than for the government to subsidise people buying the 20th property.
Supporting apartments in Victoria I guess given the huge supply wave and other approval in pipeline
QLD has always been $0 SD for FHO <$550k
What about other states ?
If by always you means since 2012. The cap was $510k from 2008-2012, and before that the rebate was 50% not 100%. You can see the full QLD history at https://publications.qld.gov.au/dataset/8b32b109-fe07-4c2c-9…
NSW has had a similar scheme since 2012 too.
What about other states ?
WA: first born child or both kidneys.
The WA government produces an interstate comparision of State taxes (So does NSW). See pages 14-16. Essentially WA, NSW, QLD, NT have $0 stamp duty for new homes for first homebuyers under a certain threshold (and effectively ACT with a nominal duty of $20). TAS, SA and before 1 July 2017 Vic do not.
should be for anyone who is not investing, people with 1 house still have to buy and sell in the same overinflated market. why should 1st home owners get the start.
Second home buyers may be further up the property ladder - above $600k.
I think my house value has just gonen up by the stamp duty amount ;D