Article published 16 August 2021
Buying your first home can be one of the biggest decisions you will ever make, so it’s important to make sure you have all the information to get the right deal for you. If you’re looking for your first home in Melbourne, knowing the housing market is always helpful in making the right decision.
The Melbourne market has performed incredibly well over the past year, recording gains of 7.7%, taking the median house price to $929,769 in July 2021.1 A more affordable option is apartments, with a median value of $610,043. Despite these increases, the multiple lockdowns have taken their toll, as Melbourne is the only state capital that didn’t achieve double digit increases in value over the past 12 months, but the silver lining is better affordability for first home buyers!
In fact, there could be a golden opportunity for first home buyers wanting to buy an apartment in Melbourne’s CBD. A great opportunity for first home buyers wanting to buy an apartment in Melbourne’s CBD was announced in the latest State Government Budget. The Government has introduced a 50% reduction in stamp duty for new homes within Melbourne city, rising to a 100% waiver of duty for homes that have spent a year or more on the market.2 This new offer is a temporary incentive for properties up to a value of $1 million, and the concessions only apply to contracts entered from 1 July 2021 to 30 June 2022 for the 50% concession, and 21 May 2021 to 30 June 2022 for the 100% concession. These are fantastic savings for first home buyers looking to get into the CBD market.
Using the First Home Buyers Grant in Melbourne
In more good news for first home buyers, when buying your first home in Melbourne, you may be eligible for the First Home Owners Grant (FHOG). The FHOG in Melbourne is a lump sum of $10,000 to help with the costs of buying your first home or vacant land to build on. In Melbourne, the FHOG is available to you if you buy a newly built home or if you choose to build a home from scratch and must be valued at $750,000 or less. For a home to be considered a new home it must not have been previously occupied or sold as a place of residence or for the provision of short term accommodation, and includes a substantially renovated home and a home built to replace demolished premises.