The REIV has welcomed the commitment by the new State Government to cut stamp duty for all eligible first home buyers by 50 per cent over the next four years. This policy will be implemented in stages, with a 20 per cent cut on 1 July 2011 and then 10 per cent each year thereafter until 2014.

We have also welcomed the commitment to maintain the existing current first home buyers grant and bonus for new homes.

These policies will assist in addressing affordability for first home buyers.

This means that as of 1 July 2011 the first home buyer of an established home with a value of under $600,000 will be entitled to a 20 per cent cut to stamp duty and the $7,000 First Home Buyer Grant.

• On a home that cost the buyer $450,000, the current stamp duty payable is $18,970. On 1 July that will drop to $15,176. In addition, the first home buyer will be entitled to the $7,000 grant.
• On a home that cost the buyer $565,000 the current stamp duty payable is $28,970. On 1 July that will drop to $23,176. In addition, the first home buyer will be entitled to the $7,000 grant.

Buyers of a new home in metropolitan Melbourne will retain an entitlement to the bonus worth $13,000 and those buying a new home in regional Victoria will retain their entitlement to a total of $19,500.

A promised new policy will see farmers aged under 35 exempt from stamp duty on the first $300,000 worth of agricultural land purchased. Depending on the final details, this could save them up to $11,370.

First home buyers who are planning to buy a home from the middle of next year should take the time to study the detail, including eligibility requirements, when they are deciding what and where to buy

If interested in learning more about this update please contact me today!

Tags: addition, cent, commitment, first home buyer, first home buyer grant, First home buyers, home, home buyers grant, metropolitan melbourne, reiv

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