Stamp Duty discount for Residential Property

Victoria has been welcoming buyers back into the property market. As part of the 2020-21 state budget, the Victorian Government has announced a range of measures to support home buyers. These measures aim to make purchasing a home more affordable and accessible.

Included in these measures is a stamp duty discount for residential property. A 50% discount on stamp duty will apply to those buying newly built homes. Whilst a 25% discount will apply to those purchasing existing homes or vacant residential land. To be eligible for the discount the residential property must be valued at $1 million or less. The waiver will be available for contracts signed until 30 June 2021.

This has come as welcome news for home buyers in Victoria. This discount can provide home buyers with some substantial savings. For example a $600,000 newly built home can normally incur a stamp duty tax of around $31,070. With a 50% waiver on stamp duty, this could potentially save buyers $15,535. For the purpose of this example, these figures do not include transfer or registration fees. These discounts could lower the amount of savings home buyers need upfront. This can help you enter the market sooner or expand the price range of properties you can consider.

The stamp duty discount is also available for those looking to invest in residential property. This means you do not have to live in the property to be eligible for the discount. This incentive could encourage investors to consider opportunities in the market.

The stamp duty waiver is among a range of measures supporting the Victorian economy. Other measures include:

  • The First Home Owners Grant: a $10,000 grant to support eligible first home owners build or buy a new home. If that home is built or purchased in Regional Victoria, eligible participants may be entitled to a $20,000 grant.
  • The Victorian Homebuyer Fund: assists first home buyers secure a mortgage with less than a 20% deposit.
  • Investment in Construction: $6 billion is being invested into the construction of 12,000 new social and affordable housing. This aims to boost housing supply and help make purchasing a home more accessible for Victorians.

These measures can help Victorian’s feel more confident to enter into the property market and provide Victoria with the support it needs throughout its economic recovery.

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