Are you a first-home buyer looking to purchase your first property in Victoria? Congratulations, you’re about to begin a very exciting journey! Buying your first home is a significant milestone in life but can also be overwhelming.
With so many questions and uncertainties, it’s essential to be well-informed before taking the plunge. One of the most important things as a first home buyer is understanding the benefits available to help make your dream a reality.
In this blog post, we will explore everything you need to know about being a first home buyer in Victoria, including stamp duty exemptions, grants available, and much more!
What are the benefits of first-home buyers?
As a first home buyer in Victoria, there are several benefits that you can enjoy. These include financial assistance and exemptions from certain taxes and fees.
One of the most significant benefits is the First Home Owner Grant (FHOG), which provides eligible applicants with a one-time payment towards purchasing or building their first home. This grant can provide up to $20,000 towards your purchase price, depending on the location of your property.
In addition to the FHOG, first-home buyers may be eligible for stamp duty concessions or exemptions. At the time of writing this article, first-home buyers are exempt from paying any stamp duty for properties valued at less than $600,000 in Victoria.
Another benefit of being a first home buyer is access to low-deposit loans and other financial products specifically designed for those entering the property market for the first time. Some lenders offer loans with as little as a 5% deposit required.
Becoming a homeowner brings with it greater stability and security compared to renting. You have control over your living environment and can make changes without needing permission from landlords or agents.
Many advantages are available to those embarking as first-home buyers in Victoria.
How much do you get with the first homeowner’s grant in Victoria?
If you’re a first home buyer in Victoria, you may be eligible for the First Home Owners Grant (FHOG). This grant is designed to help people get into their first home sooner by providing financial assistance. So how much can you expect to receive with the FHOG?
As of July 1st, 2021, the FHOG in Victoria provides a one-off payment of $10,000 for new homes valued up to $750,000 in metropolitan Melbourne and regional centres. If your new home is situated outside these areas or is valued at more than $750,000 but less than $950,000, it will reduce on a sliding scale until it reaches zero at $950k.
It’s important to note that this grant only applies if you purchase or build a brand-new house or apartment as an owner-occupier. You won’t qualify if you’re buying an established property.
The FHOG can be an excellent way for first-time buyers in Victoria to secure financial assistance when purchasing their dream home. Understanding the available benefits and taking advantage of them where possible could make all the difference when saving enough money for your deposit!
Do first-home buyers in Victoria pay stamp duty?
Stamp duty is a tax homebuyers must pay when purchasing property in Victoria. However, as a first-home buyer in Victoria, you may be eligible for stamp duty exemptions or concessions. The good news is that from July 1st 2017, all first-home buyers are exempt from paying stamp duty on properties up to $600,000.
For properties between $600,000 and $750,000, the exemption decreases on a sliding scale before being phased out entirely at the $750k mark. You will still receive some concessions if your property falls within this price range. The state revenue calculator can confirm the amount payable based on a specific purchase price.
It’s essential to note that these exemptions only apply if you intend to live in the property as your primary residence for at least 12 months of settlement. If you’re buying an investment property or plan to rent it immediately, these benefits won’t apply.
Do couples lose first-time buyers status if one partner bought in the past Victoria?
Regarding first-home buyer status in Victoria, one common question is whether couples lose that status if one spouse partner has bought a property before. The answer is not straightforward, as it depends on several factors.
Suppose only one partner purchased the previous property, and the other partner has never owned a property before. In that case, they may still be eligible for first-home buyer benefits. However, if both partners have previously owned a property, they will not be considered first-home buyers.
It’s important to note that the definitions of “partner” and “property ownership” can vary depending on the specific grant or program being applied for. For example, some schemes might consider de facto relationships differently than others.
In general, it’s worth researching and seeking professional advice if you’re unsure if you qualify as a couple. Don’t assume anything based solely on hearsay or assumptions – take the time to understand your situation fully so that you can make informed decisions about buying your first home together.
Owning your first home in Victoria is an exciting milestone, and the good news is that plenty of benefits are available to help you achieve it. From grants to stamp duty concessions, Victoria offers a range of incentives for first-home buyers.
The First Home Owners Grant significantly benefits eligible first-home buyers. This grant can provide up to $20,000 towards purchasing your new home or building costs for your new house. As a Victorian first-home buyer, you may be exempt from paying stamp duty on properties under $600k.
With all these benefits in place, now might be the perfect time for you to take that big step and become a homeowner in Victoria! So if you’re ready to make this dream come true, research the options available and start planning for your future today.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Christopher Berry | Owner and Director of Find A Better Rate Home Loans
Christopher Berry is the owner of Find A Better Rate Home Loans which was establish in July 2015. Christopher has been a Mortgage Broker for the past 17 years and has arranged finance for all types of applicants from first home buyers to complex company and trust lending. Christopher has customers located all over Australia and can assist with all of your finance requirements. Christopher can be contacted on 0477 212 840 or email email@example.com
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