*First published in the Midland Express, July 2017.
We know that buying your first home is difficult. With upfront costs, stamp duty and fees, many people trying to enter the market feel that the cost to entry is like climbing Everest. It might take years and you still might not make it to the top.
A young family who is seeking to buy their first home in Kyneton told me “It would feel like we won the lottery to finally own a house!” The barriers for this family are huge, particularly when competing with keen investors and the costs outside of the overall purchase price.
As from the 1st July 2017, Victoria will see first home owners no longer paying stamp duty on homes both new and existing valued under $600,000. First home buyers purchasing a property between $600,000 and $750,000 will also receive a tapered discount.
Aimed at putting first home-owners on equal playing field, these tax concessions are a boosted incentive for those struggling to enter the market. This can only be a good thing.
For sellers, it is an opportunity to secure a sale from those who were previously reluctant to take the leap because a large proportion of their deposit would have gone on to stamp duty.
Opportunities like this can open up sales opportunities to an emerging group of buyers. So consider this a possible win-win for both first home buyers and those that were worried their house might sit unsold.
For many who have been waiting in the wings, the doors are finally about to open!