The Victorian budget is here!
But what’s in it for prospective residential property purchasers!
If you’re looking to buy residential property today or in the next 12 months, there’s plenty of good news.
In fact, the news is so good, that it might prompt many to bring forward their property purchasing plans.
The major headline for property purchasers in 2021 is massively reduced stamp duty to homes valued up to $1million.
New homes will be subject to a 50 per cent reduction in stamp duty, whilst those purchasing existing homes for under $1million will be granted a 25 per cent reduction in stamp duty.
There is a time limit, however, and this only applied to contracts signed from Wednesday, 25 November 2020 and June 30 2021.
So, if you’re in the market for an existing home and have a budget of $850,000.
In this scenario, let’s assume that the home you’re purchasing will be your Principal Place of Residence and it is not your first property.
If you signed a contract before Wednesday, 25 November 2020 the stamp duty payable would be $46,700.
In the same scenario, with a contract date between Wednesday, 25 November 2020 and June 30 2021, the stamp duty payable would be $35,025.
That’s a massive saving of $11,675!
On a new home at the same price, the saving would be $23,350.
There are even more benefits for those buying or building in regional Victoria.
Irrespective of whether your purchase in regional Victoria is a first-home purchase or not, residential home purchasers and builders will also be able to access an increased first-home owner grant of $20,000.
This applied to contracts signed up until June 30, 2021 and is double the $10,000 grant for first-home buyers in the metropolitan region.
Of course, first-home buyers in metro Melbourne will still be able to access the $10,000 grant as well as the stamp duty savings.
The Victorian government has also announced a $500 million fund aiming to help homebuyers with their deposits to try and make homes more affordable for prospective buyers.
These are massive incentives for those looking to buy or build a new home.
Of course, this also means a potential increase in competition and with less stamp duty payable, an increase in the budgets many people will bring to the negotiation table, meaning it could create an opportune time for vendors.