BREAKING NEWS: Massive Stamp Duty cuts in Victoria for first home buyers

Can we buy a property in April and have a settlement date in July to get the stamp duty waive off?

 

Hmm...interesting observation.

Do you have any advice for a FHB like myself who is looking around that range? Does buying cheaper stock now refer to investors and FHB alike? Or is it best to wait until that stagnating period...

Just weighing up whether it's best to buy now/in the next few months and cop the stamp duty...

Or wait for exemption with less up front cost with a 15k saving now but compete for property that may go up 50k?

I envisage multiple different scenarios - this FHB stimulus may unmask and bring out many working professionals who have been sitting on deposits ready to go waiting for the right time...and thus drive up prices that way or simply allow the extra 15k deposit to be put to more borrowing power.

On the first Saturday after July 1st, will there be an instant rise in prices around the FHB bracket? Or will the price rise over 1-2 months in response to the extra FHB stimulus? I'm just thinking when would be best to buy, pre FHB discount or later. And if later, soon after July 1?

I'm looking north and west wherever I can afford ie. Thomastown

At least FHB's won't be as likely to lose to bids of 601k now....I guess 751k will take that spot

Would love a crystal ball!

 

Lots of suburbs lurking in the range - Hoppers kings park Epping thomastown lalorp Altona meadows Point cook Werribee truganina william landing properties in high low 500kish will likely be pushing towards 600k with these changes

Not suprised if townhouses below 600k would in demand soon

 

I know at least 6 couples who fall into this category and they know dozens more. This is exactly what I was talking about in another thread. These people have good deposits and I think this might just be the incentive they needed to push them into the market.

Interesting times ahead.

 

I think this stimulus will definitely encourage the FHB's that were contemplating buying to come into the market.
I recall in 2009 between National and State governments there it was a total of 32k grant for FHB's to build, and I think 18k grant for existing. This created a frenzy in the 'affordable' markets. Especially in new land estates. Interest rates were much higher then also.

I can really see these new policies having a similar affect on the FHB dominated markets. Prices wont all go up on July 1st, but watch the increases over the months following as activity increases in these markets.

If I was a FHB, I'd seriously consider buying prior to July 1st.

The markets this will affect the most are already heated and have been rising.

 

If you've got the deposit to contribute (up to $15k) for the stamp duty, purchase before July. As of this announcement there's a lot of people who aren't going to buy, meaning a lot less competition. After the 1st of July there will be a waive of people buying.

 

Worlds goes on. Look at GFC

 

Disagree here.
Melbourne will not pull ahead if Sydney...it's economy although strong I'd not as robust as Sydney, and Melbourne does not have the natural supply barriers Sydney has either.
..And the QLD govt won't do jack..they don't have the bullets in their gun to act- ie they need the money, unlike the Southerners who can do such things.

 

From Victorian stamp duty changes aimed at making housing more affordable for first-time buyers - ABC News (Australian Broadcasting Corporation)

"As part of a suite of changes to make housing more affordable, the Government will also introduce a new tax levied at 1 per cent on vacant residential property to target empty properties in Melbourne's inner and middle suburbs.

Owners will be encouraged to make vacant properties eligible for purchase or rent.

There will be exemptions if it is a holiday house, a deceased estate or if the owner is overseas."

Why allow an exemption if it's a holiday home? And how long would an owner be allowed to be overseas and still be exempted?

 

the immigration into melbourne is huge also a lot of stdney siders moving there. the cost of doing business in nsw is killing business.

qld may surprise you

 

• It's not completely vacant if a holiday home. It is being used some of the time.
• The tax is designed to make housing more affordable by not having vacant properties. Apart from say absolute beach front most holiday homes are not in unaffordable locations.

 

From an Age article below
Owners who leave homes vacant will face a tax slug as Victoria acts to increase housing affordability

The new vacant property tax rate will be 1 per cent of the property's capital-improved value rather than its overall worth. It will apply to homes that are vacant for more than a total of six months in a calendar year.

Premier Daniel Andrews said the tax would send a strong message to owners who were "effectively banking an empty property and denying that to the market".

At least 24,000 properties were "demonstrably unoccupied" in Melbourne in 2014, according to a study conducted by Prosper Australia. However, the study suggested the number of empty properties might be much higher based on an examination of water use.


That Study was showing 24,000 vacant properties in 2014, I'm sure it's more now. I'm sure there's ways around not leasing a vacant place, use it as a holiday house, list it for rent but do not accept anyone once they apply. But most will have either pay the tax which doesn't state if it's every year or once off, or rent out the vacant property.

Anyone think this will initially affect rental returns once they hit the market?

 

I need to ensure that I don't sign my building contract until 1st July then!

 

There's no stamp duty on a building contract. This concession applies to the date the land purchase (which may include an existing house) is signed.

 

That is one of the benefits of OTP or buying land to do own build, you only pay on the unimproved land value.

 

The vacancy tax should be equivalent to the market rent for the area. 1% is a tokenistic, pretending to do something while actually doing nothing policy

 

Investors pay full stamp duty on Otp in Vic from Jan 1st. Fhb pay nothing for contracts signed after July 1.

 

That vacancy tax! The ol socialists love that one.

 

Say what? in QLD stamp duty for first home buyers for homes under $500k is already $0, and on strongly discounted sliding scale to $550k after that. Been that way for many years.. Hence why you see many FHB tap out at prices near $500k. More like Melbourne is playing catch-up

 

Hungry buggers down there it seems ! Or they trying to throttle the goose that lays the golden egg.

So have they found a way to hit you if you buy the block and do the build separate ?