Property is a clear priority in the 20/21 Victorian budget with a wealth of opportunities being made available to prospective first home owners and investors alike in a bid to stimulate the economy.
The Victoria Homebuyer Fund will assist first-home owners to get onto the property ladder sooner with a smaller deposit (less than 20%). The fund will provide $500 million in contributions toward the purchase price of property for a first home buyer, in exchange for the State taking an equitable interest in the property proportionate to the amount contributed. Unlike previous grants extended to first home purchasers, the Victorian Homebuyer Fund will be available for both established homes and new builds.
Regional first-home owners will benefit from the First Home Owner Grant being extended to the 30th June 2021. The $20,000 grant is available for those buying or building a new home in regional Victoria, for contracts entered into up to the June 30th deadline.
To encourage investment in Victorian property and to stimulate rental availability, the budget is also offering a 50% discount on Land tax from the 1st January 2022, for eligible new developments, until 2040. Eligible developments will also be exempt from the absentee owner surcharge, opening up opportunities for investors outside of Victoria.
Residential contracts entered into from 25th November 2020 through to the 30th June 2021, will be eligible for big discounts on stamp duty. Established residential properties will enjoy a 25% stamp duty waiver, while new residential properties will receive a generous 50% waiver. The discount will be available for transactions up to $1 Million.
While further details have yet to be released, the 20/21 budget has made it clear that investment in property holds a central focus in Victoria’s recovery from the impact of COVID-19 on the state economy.
You can learn more by visiting https://www.budget.vic.gov.au/place-call-home-victorias-big-housing-build
**An earlier version of this article omitted that the stamp duty discount would be capped at purchases up to $1 million. We apologise for this oversite.**
