Victorian concessions for stamp duty increased first home buyer numbers

By the resi financial blog team, 07 January 2014

Stamp duty increases in Victoria

Concessions to stamp duty for Victorian first home buyers have been a great success, with over $150 million being saved by buyers since the cuts were introduced. This could be great news for anyone interested in taking out their first home loan and securing property in the new year.

The 20 per cent concession, which was introduced in July 2011, was bumped up to 40 per cent in July 2013. Treasurer Michael O'Brien stated there were plans to increase this concession up to 50 per cent in September 2014.

"Over 43,000 eligible first home buyers have realised the dream of owning their own home in Victoria since stamp duty concessions were introduced, saving of more than $150 million," said Mr O'Brien in a January 7 statement.

He went on to say that, during this financial year alone, over 10,000 first home buyers have saved almost $58 million - which amounts to more than $6,000 in concessions for a property purchased for $400,000.

Furthermore, Mr O'Brien said the number of first home buyers in Victoria has surpassed the combined efforts of both New South Wales and Queensland, pointing towards the successful encouragement of these buyers in the market following the incentive's introduction.

"What this shows is that the government’s 40 per cent stamp duty cuts to eligible first home owners and the increase in the first home owners grant from $7,000 to $10,000 for newly constructed homes are having a very positive impact," said Mr O'Brien.

This could provide the opening for any potential buyers looking into the market in Victoria.

The opportunity to save a relatively large amount of money is a great incentive for getting in contact with a financial expert, discussing your home loan options, and investigating the real estate market today.

Categories: Home Loans, Personal Finance