The state government has recently introduced a number of new incentives aimed squarely at the first home owners, concession card holders and pensioners in regards to stamp duty concessions.
First home buyers are now eligible for a 20% discount on the amount of stamp duty payable. The initiative was introduced 1st July 2011 and applicable to all properties settled on or after this date up to a maximum purchase price of $600,000.
Now if your in Victoria, this is in addition to the $7,000 existing First Home Owners grant already available for established homes. On the average $550,000 purchase price you can potentially save over $13,000 on stamp duty alone.
In addition to the 20% stamp duty saving, a further 10% reduction will follow each subsequent year amounting to a total of 50% by 1st September 2014 (so, 20%,10%,10%,10%= 50%).
This is great news for First Home Buyers providing it doesn’t artificially inflate properties as evidenced in the past though it looks like the staggered rollout will alleviate this somewhat.
Don’t be the old guy on our office wall waiting for the price of property to come down, these stamp duty savings may never repeat themselves again.