With the recent surge in housing prices, buying a first home has become a formidable challenge for many people. The Victorian Government, however, has introduced some measures aimed at making the process easier for first-time home buyers. This artical will explore the range of programs and financial assistance offered by the Victorian Government, and how these can help first-time home buyers to secure their dream home.
One of the most significant initiatives by the Victorian Government is the Victorian Homebuyer Fund. This scheme is a lifeline for those who are struggling to save for a home deposit. If you have a 5% deposit, the Victorian Government will contribute up to 25% of the purchase price, in exchange for an equivalent share in the property, which can reduce your mortgage significantly. This shared equity scheme helps potential buyers enter home ownership more affordably and conveniently.
Another supportive measure is the $10,000 First Home Owner Grant, which is available for those buying or building their first new home. The property must not have been previously sold or occupied, and should be valued at $750,000 or less.
Stamp duty can be a significant cost when buying a home. To alleviate this, the Victorian Government has abolished stamp duty for first home buyers purchasing a property for $600,000 or less. If you’re buying a home between $600,000 and $750,000, the stamp duty tapers off and increases slightly with the cost of the home.
If you’re buying off the plan, there is a concession available. Stamp duty is only payable on the land, not the property itself. This concession was once available to investors, but it is now only available for those buying the property as their main residence or qualifying first home buyers.
For Defence Force members who may not meet the residency criteria for the First Home Owners Grant due to deployment, an exemption is available from the residency requirements.
Finally, to give first home buyers a leg up, the government has implemented a land tax on vacant residential properties to free up more opportunities. The Victorian Government is also creating opportunities by developing new urban precincts with a target of at least 10% of properties in Government-led developments dedicated for first home buyers.
It is important to research thoroughly to understand all the support available and check your eligibility for these programs. To find more about these initiatives and apply, visit the Victorian Government’s official websites and the State Revenue Office website.
These programs demonstrate the commitment of the Victorian Government to provide practical and financial support to first-time home buyers, helping them to navigate the complex and often expensive process of home ownership.
