Victoria was not among the worst-affected states by the pandemic. It remains an option for homebuyers in need of support.
McGrath Estate Agents founder John McGrath stated, “While Melbourne hasn’t been the most glamorous city in recovery,” the city’s recent revival proved its resilience.
He said Melbourne was a great example of Australian property’s strength and resilience.
Melbourne’s median house price increased 17.4% to $972.659 in the past year. However, its median unit prices rose 7.8% to $621.898.
Victoria’s regional market managed to make the most of current conditions, with price gains of 19.6% for houses and 19.8% for apartments.
“As Australia finally opens up, I expect Melbourne to rise again as one of the world’s most liveable cities,” Mr McGrath said.
These are the most appealing incentives for homebuyers
McGrath stated that the Victorian government’s dedication to building and property is apparent in the current range homebuying incentive programs.
Recently, the Victorian government increased the threshold for the off the-plan stamp tax concession.
Temporarily, price caps were raised from $550,000 to $750,000 by existing buyers to $1m.
“The concession reduces the stamp duty payable by deducting the cost of construction incurred after the contract date from the purchase price to determine a reduced ‘dutiable value’ upon which stamp duty is charged,” Mr McGrath said.
This temporary change allows buyers who purchase higher-value apartments and are often downsizers to receive discounts up until June 30, 20,23.
Additional stamp duty discounts
Additional concessions on stamp duty are available in the 14 suburbs of Melbourne LGA.
The discount is available for new properties of up to $1m. This discount is available to both property buyers and investors.
If a property has been on the market for less than one year, buyers will not be required to pay stamp duties.
For newer listings, a 50% discount is available on stamp duties
McGrath explained that this is an incentive to purchase new apartments in the city or surrounding areas such as Docklands, Southbank, Carlton, Kensington.” McGrath also added.
“Buyers can take advantage of both the on-the plan and off-the-plan concessions to make big savings.
The Victorian government offers concessions on duty for principal residence properties.
This concession is only available to properties over $550,000
For first-home buyers, a complete exemption from stamp duty applies to established and new properties up to $600,000.
First-time buyers of property over $600,000.00, less than $750,000, will get stamp duty discounts
They may also apply for the $10,000 First Homeowner Grant.
For properties below $330,000, stamp duty exemptions are available. Concessions are available to homes over $750,000.
Victorian Homebuyer Fund
To assist first-time buyers, the Victorian Homebuyer Fund was launched recently by the state government. It is worth $500m.
This program is a share ownership scheme where the government could contribute up to 25% to the property’s price.
The scheme requires that first-home buyers earn less than $125,000 annually and must have a deposit of at least 5%.
The income threshold for married couples stands at $200,000.