OK so you read the heading and get intrigued and excited. Lets mellow this down to the reality that is happening. Its made waves online, TV and radio. In a nutshell the Victorian Government has come to save the day in regards to removing stamp duty payable for first home buyers up to $600,000!
So lets re-cap the first paragraph. Great news for first home buyers - if your looking at purchasing your first home and it sits under $600,000, from July 1 2017 you will no longer have to pay any stamp duty tax. Sounds too good to be true right? WRONG. Actually it gets better... If you purchase your first home and the purchase price is to be between $600,000 to $750,000 you will still be exempt from paying full stamp duty but rather be on a sliding scale.
Now more importantly what do these changes do to our current property market? The areas that have a median price of anywhere under $600,000 to $750,000 will obviously get a lot more traction and transactions happening. In fact, these changed are to stimulate a property market in Victoria that is becoming a little out of control.
Now taking this is into context and digesting this new change, what are the facts showing to push a change like this into effect? Only two mainly, and they are the ever growing population and more so supply and demand.
On a personal note, the areas that will be in high demand and have capital growth because of these changes in years to come are largely due to the governments approval for 100,000's more lots to be built by the end of 2018. Those areas are below:
- Quandong (close to Werribee)
- Tarniet Plans, Kororoit, Mt Atkindson and Plumpton (close to Melton)
- Sunbury South and Lancefield Rd (close to Sunbury)
- Beveridge, Wollert, Northern Quarries and Lindum Vale ( close to Whittlesea)
In conclusion, if you're a first home buyer, count yourself lucky that these changes are in place and don't take for grated the grant on offer (pardon the pun). With massive changes like this in the property market, take advantage and get your foot in the door before it simply becomes our of reach!