More Efforts to Support First Time Homebuyers in Victoria

The Australian Federal Elections that will take place on the 21st of May that will elect new members of the parliament is expected to affect interest rates in major cities weeks or months after. Not all cities are expected to see these effects, but it’s still important to know what could happen.

Check out our previous blog: https://www.hillbrook.co/blog_posts/395-on-the-federal-election-and-its-possible-impact-on-the-house-prices

Still, on the topic of housing and house prices, first-time homebuyers in Victoria have been receiving millions of support from the Andrews Labor Government which has definitely been helping to boost the economy, especially after the impact of COVID in different industries, including housing. Financial support by the Andrews Labor Government in the form of grants and concessions has been provided each week to Victorian first-home buyers and looks like the government is looking to support more.

Last year, the initiative recorded 51,000 stamp duty concessions plus exemptions and handed over 21,000 First Home Owner Grants. So many individuals were able to move into their first homes because of the grant. to A total of $180 million concessions plus 10,000 stamp duty exemptions have been approved in the first three months of the year while about 10,000 First Home Owner Grants have been paid to a total of 3,500 homebuyers.
The First Home Buyer Grant allows these new buyers to enjoy a stamp duty concession. Stamp duty is the tax placed on government documents usually when transferring assets or property. This was meant to fund government activities. The stamp duty concession exemption was applied to properties amounting to $600,000 or less and a reduced concession for those who bought properties over $750,000.

The First Home Owner Grant allows Victorians to buy or build their homes valued at up to $750,000, as well as enjoy other perks. Because of this, the benefits approved in 2021 were up 20 percent more than in 2020. In addition to this, the Andrews Labor Government introduced the Victorian Homebuyer Fund wherein funding will be provided for Victorians to help them move into their properties. So far about $140 million in shared equity in six months has been given, which helped 850 Victorians.

These grants will continue to approve hundreds more applications, which would enable Victorians to achieve their dream of owning a home. Those who were granted the Homebuyer Fund will enjoy benefits such as a reduced required deposit to 5 percent, plus according to the information released, “it contributes up to 25 percent towards the purchase price of the property in exchange for an equivalent share in the property.”

Treasurer Tim Pallas says that the challenges of housing affordability have left so many to question their capability to own a place they can call home. The government has the responsibility to provide practical, money in the hand support for those who need a house so these efforts will definitely make a real difference for so thousands of Victorians. Buying a home in this day and age has become an achievement because of how expensive it can be. But there must be projects and initiatives that could ensure Victorians take this step. It is a good time for so many Victorians to buy a house now because of the support from the government, and this is a good encouragement to explore all the available resources.

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