July 27, 2014
In recent years First Home Owners in Victoria have received stamp duty concessions when purchasing their first home. Initially this concession or discount was 30%, then 40% and has now increased to 50%. The 50% stamp duty concession is available for all cuurent contracts that settle on or after 1st September 2014.
So if you are currently looking to place an offer on a property then a settlement date of 1st September 2014 or beyond will be beneficial.
As an example a $400,000 purchase would normally attract the following stamp duty and transfer costs :
Investment property - $20,300.20
Principal place of residence (non first home buyer) - $17,600.20
First Home Owner (Settle before 1/9/2014) - $11,052.20
First Home Owner (Settle on or after 1/9/2014) - $9,415.20
Separately, the first home owners grant was amended by the Victorian State government in 2013. The grant was abolished for first home buyers buying existing properties. As a trade off the grant for buying or constructing a new property increased from $7,000 to $10,000.
For further information on the above please call me on 0428 434084 or alternatively visit the State revenue Office website. http://www.sro.vic.gov.au