DescriptionThis video will help explain some of the exemptions and concessions available to first home owners.
Searching for and buying your perfect first home is an exciting time. Congratulations for taking the first steps toward it!
Now that you are in the market for your first home, you may have heard about the First Home Owner Grant and duty concessions available from the Victorian Government to help you on your way with this important step in your life. We would like to help you understand what’s on offer, and provide some important information about eligibility for these initiatives.
As a first home buyer, you may be eligible for a First Home Owner Grant of $10,000. This grant is available for eligible first home buyers who enter a contract to build, or buy a new home.
Further, you may get a reduction of the amount of stamp duty you have to pay because you are an eligible first home buyer. Depending on the value of your new home, a full exemption, or reduced rate of duty can apply, as long as certain residency requirements and other eligibility criteria are met.
All homebuyers receive a concessional rate of duty when they purchase a home valued at not more than $550,000 that is to be used as their principal place of residence. This concession applies even if the purchase is not the homebuyer’s first purchase of a home. The concession is capped at $3100 and is applied on the condition that at least one homebuyer lives at the property for 12 continuous months, within 12 months of settlement.
Duty reductions for first home buyers.
In addition to the PPR concession, eligible first home buyers purchasing a principal place of residence valued at not more than $600,000 can obtain a 50 per cent duty reduction that is applied in addition to any PPR concession. (flash up on screen – for contracts entered after 1 September 2014.) The duty reduction applies to new and existing homes provided it is the homebuyer’s first purchase of a home. To qualify for the duty reduction you must meet the same residence requirement that applies to the PPR concession and all the eligibility requirements for the First Home Owner Grant, apart from the requirement that the home be a new home. Where the home is a new home, you will also be eligible for the First Home Owner Grant.
First home owner with family
If a first home owner with a dependent child purchases a new or established home valued at less than $150,000 as their first home, a full exemption from duty applies. A concessional rate applies for property values between $150,000 and $200,000.
For the first home owner with family exemption or concession, the property must be purchased for market value and the applicant must intend to live there as his or her principal residence.
The applicant must also have a dependent child at the time the contract of sale was signed or within 11 months after that date. If the property is being built, the applicant will need to have a dependent child on, or within 11 months of either the building contract date or construction start date, whichever is earlier.
The First Home Owner Grant. PPR concession. Duty reduction for first-home buyers, and first-home owner with family exemption or concession. Helping you make the dream of your first home a reality.
For more information on any of these schemes, visit our website at sro.vic.gov.au, or don’t hesitate to contact the SRO on 13 21 61.