New Victorian government initiatives for first home buyers
First home buyers are still struggling to get themselves into the property market and the Victorian government wants to help.
New initiatives are set to be officially announced this Sunday for first home buyers in Victoria. The initiatives include stamp duty exemptions and the option of co-purchasing a property with the government. These new initiatives come just days after the Victorian government announced that it will be doubling the first home owners grant for those wishing to purchase properties in regional Victoria.
Due to come into effect on 1 July, first home buyers of new or existing homes valued up to $600,000 will have access to additional stamp duty exemptions where they will be completely exempt from paying stamp duty. If the property is valued between $600,000 and $750,000 there will be exemptions available based on a sliding scale.
The other initiative to be announced is a $50 million pilot program called HomeVic, which will give around 400 people the chance to purchase a home, with the government taking up to a 25% equity share in the property.
Beginning in January next year first home buyers who earn up to $95,000 as a couple or $75,000 as a single with a 5% deposit will be eligible for this government assistance. When the property is sold, the government will recoup its share in the equity.
“In the past, if you worked hard and saved enough, you could afford to buy your own home. Now, that’s getting harder and harder,” Victorian premier Daniel Andrews has said.
“These changes will help thousands of Victorians make the great Australian dream a reality.”
As well as the two above initiatives, the Victorian government will also contribute $5 million to the national community-sector-based shared equity scheme Buy Assist. This is expected to offer an additional 100 shared equity properties to help lower income buyers get on the property ladder.