Victoria abolishes stamp duty for first-home buyers

Victoria abolishes stamp duty for first-home buyers

10 March 2017

Victorian Government

 

To go someway in addressing the chronic issue of housing affordability, the Victorian Government has introduced Homes for Victorians which includes a number of measures; namely:

  • abolishing stamp duty for first time buyers on homes up to $600,000 and cuts to stamp duty on homes valued up to $750,000
  • doubling the First Home Owner Grant to $20,000 in Regional Victoria to make it easier for people to build and stay in their community
  • creating the opportunity for first home buyers to co-purchase their home with the Victorian Government
  • making long-term leases a reality
  • building and redeveloping more social housing – supporting vulnerable Victorians while creating thousands of extra jobs in the construction industry.

According to the Government: “Median house prices in Melbourne have risen by over 40% since 2012. Metropolitan Melbourne house prices have risen to $610,000 and unit prices to $490,000 for the June Quarter 2016. Melbourne continues to have the highest home prices after Sydney.

From 2005 to 2015, the median sale price of housing across regional Victoria increased 49%, from $206,000 to $307,500. At the same time unit prices in regional Victoria rose 32%, from $190,000 to $251,000.

These increases are having a real impact on the ability of Victorians to buy a home. From 1994-95 to 2013-14, home ownership rates dropped from 76% to 69% of Victorian households.”

In a multi-prong approach, the Government has also announced that it will prioritise Government-led developments for first-home buyers, it will work to end underquoting in the real estate industry and it will increase the housing supply through plans for 17 new suburbs with 100,000 home sites around the Melbourne metropolitan area.

 

Read more here.