First Home Buyers
Information supplied by George Lambadaridis from Victorian Financial Solutions
Buying a new home valued up to $750,000? You may be eligible for First Home Owner's Grant - $10,000 in Metro Melbourne, up to $20,000 in regional Vic
Exemptions & Concessions to paying Stamp Duty
First Home Buyer:
Principal place of residency valued up to:
$600,000 = fully exempt from paying stamp duty
$600,001 - $750,000= Concession scale **see below link
Other key considerations:
• All concessional discounts are only applicable to contracts entered into on or after 1st of July 2017.
• All purchasers and their partners must meet FHOG eligibility criteria (please ring me with scenarios that best suit)
• At least one purchaser must use the home as principal place or residence (their home) for a continuous period of 12 months, starting within 12 months of being entitled to possession of the purchased property (which normally occurs at settlement).
Table Example **Extracted from State Revenue Office
Dutiable Value; Normal Duty Duty After Concession
$605,500 $31,370 $1045
$625,000 $32,570 $5428
$650,000 $34,070 $11,356
$675,000 $35,370 $17,785
$700,000 $37,070 $24,713
$725,000 $38,570 $32,141
$745,000 $39,700 $38,444
Here is a link if you want to calculate stamp duty concession exaclty:
OFF THE PLAN- PURCHASES
Off-the plan Concession - Important Changes as of 1st of July, 2017
Concessions are based on 2 basic scenario's of whether contracts where signed before or after 1 July, 2017
Before 1 July 2017 (Contract Signed) -
• Concession available for all property types including residencies purchased for investment purposes or commercial properties
After 1 July 2017 (Contract Signed) -
• Concession available only for purchases of a home. The transfer must also qualify for the Principal Place of Residency Concession or the First Home Owner Concession which impose a 12 month residence requirement and certain thresholds.
• The concession is no longer available for off -the plan purchases of holiday homes and investment or commercial properties - These transactions incur full stamp duty.
• If the off the plan purchase is NOT your first home, the home must have a dutiable value (after the Off-the plan concession has been applied) or $550,000 or less. Applicants must also meet all criteria for PPR Concession and live in the property for continuous period of 12 months
The information in this website and the links provided are for general information only and should not be taken as constituting professional advice from the website owner - Kaye Charles Real Estate. KCRE is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. KCRE is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.