With the property marketing looking to bounce back in 2021, there are still a number of great concessions available for home buyers.
In a bid to keep the State and Federal economies ticking over throughout and beyond the Coronavirus pandemic, both levels of government announced some amazing incentives for home buyers in 2020.
Many of these remain in place as we move into 2021, albeit with some changes.
And if you’re in the market for a home, then you may need to act quickly, as many of these concessions will no longer be available following the end of the Financial Year.
As has been the case for some time now, first-time home buyers have access to a range of great concessions but there is plenty in there for those who are buying their second home.
It’s important to remember, however, that most of these concessions are for home buyers. This means that the property you are buying or house you are building will need to be your Principal Place of Residence.
That’s not to say there’s nothing going for investors, however!
So, let’s look at what’s available from the State and Federal Governments…
Victorian State Property Concessions
Victoria has had some strong grants, schemes, incentives and discounts for first-home buyers for some time now.
Perhaps the most noteworthy are:
- No stamp duty on property under $600,000.
- Discounted stamp duty on property between $600,000-$750,000.
- $10,000 grant for new properties under $750,000.
- $20,000 grant for new regional properties under $750,000.
This essentially means that a first-home buyer could, for example, pay no stamp duty and receive a $20,000 grant if building a new home in regional Victoria.
But what if this isn’t your first home?
The good news is, there’s still some great concessions and grants available to you.
The biggest of which is the stamp duty waiver available for residential property with a dutiable value of up to $1million for ANY buyers.
That means investors as well as home-buyers.
If your contract is signed on or after 25 November, 2020 and before 1 July, 2021, the following stamp duty waivers could apply:
- For new residential properties, a 50% land transfer duty waiver of the duty otherwise payable applies.
- For existing residential properties, a 25% land transfer duty waiver of the duty otherwise payable applies.
- For vacant residential land, a 25% land transfer duty waiver of the duty otherwise payable applies.
Federal Property Concessions
As part of its response to the COVID19 pandemic, the Federal Government announced a HomeBuilder program to help spur on the building and construction industry.
HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant to build a new home or substantially renovate an existing home. HomeBuilder assists the residential construction sector by encouraging the commencement of new home builds and renovations.
On 29 November 2020, the Government announced an extension to the HomeBuilder program, extending it until 31 March 2021, albeit with some key changes.
The major changes to the HomeBuilder program, following the extension, include:
- A $15,000 grant (down from $25,000) for building contracts for new builds and substantial renovations, signed between 1 January 2021 and 31 March 2021, inclusive.
- An extended deadline for all applications to be submitted, including those applying for the old $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
- An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 4 June 2020.
- An increase to the property price cap for new build contracts in Victoria to $850,000 (up from $750K) where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
For more information: https://treasury.gov.au/coronavirus/homebuilder
Are you in the market for a new home or property and want to make sure you make full use of any grants, concessions or waivers you may be eligible for? Learn more about our conveyancing services in Melbourne.
Our experienced Melbourne conveyancers are across all the latest developments and can provide expert advice to those looking to enter the market in 2021, ensuring you take full advantage of the fantastic help that is available.
Contact us today to ensure you take full advantage of these fantastic concessions!