buy before or after stamp duty changes?

Buying our first home in Victoria, should we buy after the stamp duty changes mean no stamp duty for us, or before the changes come into effect in case prices just balloon after the change?

(sorry if this has already been discussed; I tried searching for any pre-existing threads but I might just be searching wrong)

 

You will know for certain around august or September.

I'd say buy when you are ready and can afford something you like.

It's a good chance prices will rise as the changes take effect, but other factors might also come into play offsetting the changes.

One thing is fairly certain, you will have much less competition with other fhbs now, but still have to deal with other investors competing.

 

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

 

Prices won't jump overnight, although I reckon there will be a spike. Buy the day after the change and save yourself some coin

 

The last time there was a similar cut (from FHBs paying 100% to 50% stamp duty), there was a definite dip and then surge in certain markets either side of the 1st of July. It wasn't extreme but it did exist.

This discount is worth a maximum of $15k to first home buyers. That doesn't mean that prices will risk by $15k, it means FHBs either don't have to save an extra $15k, or they can leverage that $15k to buy at a higher price. It could be leveraged into about an extra $100k.

Let's not kid ourselves, this discount isn't going to make housing more affordable, quite the opposite.

If you're planning to buy your own home, I'd suggest that if you see something tomorrow that meets your criteria, then go for it. If you don't find anything suitable, wait.

Don't not purchase the right property because of a $15k stamp duty reduction, it won't be there in 3 months. Also don't buy something because you think it'll be more expensive later - a mistake will cost a lot more in the long run.

The best time to buy is always when you're ready. The definition of 'ready' is up to you.

 

As mentioned previously, from 1 July property prices may have risen higher than the stamp duty savings, compared with buying now. There is a blog about this on my website.

 

I believe credit tightening limits a surge. NOBODY who had capacity to borrow has been waiting for a opportunity. There is no elastic demand for this question. Its inelastic. I would think patience will be the better option.

 

Fhbs arent limited by the credit tightening that affecting investors. Or just marginally with higher living expenses and discounted overtime and bonus income.

They are limited by deposit 99% of the time, which this change is going to turn around.

 

Definitely wait - only other first home buyers get that advantage after July 1, whereas investors and non first home buyers won't

 

It is going to depend where in Victoria you are buying @Waylah . Outside of Melbourne it may not have such an effect. But I certainly believe, with the pent up demand we are seeing right now for property that there are a few first home buyers like yourself that are considering waiting. The main issue is availability of homes for sale and lack there of. This is what is pumping up prices and I don't see waiting for a stamp duty saving in the hope it helps you buy as being the magic panacea so many first home buyers are hoping for.

Whether or not you choose to wait is something that you need to decide, but I would not wait because you think that you'll get a property for cheaper. Only wait if this is what you wish to do as it fits within your timeframe to enter the market.

I personally think that many others are of the same mindset, and will wait then try to jump in, but the market will just soak up the money buyers considered to be stamp duty savings and you'll end up just having to pay that much on top of the purchase price.