First-home buyers in Victoria wanting to buy an existing home have just two months to make their purchases and still receive the existing $7,000 first-home owner grant.
The Victorian state government has announced, ahead of its May 7 state budget, that on June 30, it will join NSW and Queensland by ending the long-running handout instead in favour of a bigger $10,000 grant – launching on July 1 – but only for newly constructed houses and apartments under $750,000.
The grant is available to homes and apartments built under a home building contract, built by an owner-builder, purchased off the plan or sold for the first time as a residential premise.
All first-home buyers will benefit from fast-tracked stamp duty savings, which will increase from 30% to 40% on homes valued up to $600,000, beginning on July 1.
The changes to the Victorian first-home owner grant, aimed to assist first home buyers and create jobs in the struggling housing construction industry comes at as the Real Estate Institute of NSW (REINSW) campaigns for the reinstatement of the $7,000 first-home owner grant for existing homes in NSW.
In September last year, Queensland ended its $7,000 first-home owner grant in favour of $15,000 construction grant to buy or build a new home, since renamed the ‘Great Start Grant’.
In October, NSW ended its $7,000 first-home owner grant in favour of a $15,000 grant to buy or build a new home.
With other changes set to occur to different state incentive schemes for first-home buyers over the next six to 18 months, these are the key dates that prospective FHBs need to put into their calendars:
All dates correct as of April 29 2013 and may change with the release of state budgets later in the year.
June 30, 2013 – Victoria
The date the Victorian government ends its $7,000 first-home owner grant. The grant is available if the price of the property or construction of the home does not exceed $750,000. An exception to this requirement is where the contract relates to a home that is on, or to be built on, primary production land.
June 30 2013 – South Australia
The $8,000 Housing Construction Grant (HCG) will expire on June 30. It applies to contracts entered into between 15 October 2012 and 30 June 2013, or in the case of owner builders, where construction commenced between 15 October 2012 and 30 June 2013. A property value cap of $450,000 applies.
June 30 2013 – ACT
The Home Buyer Concession Scheme (HBCS), offering stamp duty concession to first-home buyers and anyone else purchasing a new home or residential vacant land under certain thresholds (details on the ACT government website), is due to expire on June 30.
July 1, 2013 – Victoria
The start of the $10,000 grant in Victoria for newly constructed homes. In addition, the state government will also increase stamp duty cuts of 40% for all first home owners (including those buying existing homes) for homes valued up to $600,000. The combination of a $10,000 first-home owner grant and 40% stamp duty cut means that Victorians buying a newly constructed first home for $400,000 will save over $16,500.
January 1, 2014 – NSW
The $15,000 grant for first-home owners who purchase or build a new home in NSW valued at up to $650,000 will reduce to $10,000 from this date.
June 30, 2014 – South Australia
Up until this date, South Australian first-home buyers of established homes are entitled to a $5,000 grant. From July 1, 2014, no first-home owner grant is available to purchasers of established homes.
June 30, 2014 – South Australia
Stamp duty concessions for first-time buyers who purchase an apartment off the plan in the Adelaide CBD will end on this date. The scheme is available on the transfer of a new CBD apartment or a “substantially refurbished apartment” for a contract entered into from May 31, 2012, to June 30, 2014, capped at stamp duty payable on a $500,000 apartment of $21,330.
June 30, 2014 – Tasmania
The $8,000 First Home Builder Boost Scheme grant available to Tasmanians building a new home (including off-the-plan) if the qualify for the first-home owner grant will end on this date.
September 1, 2014 – Victoria
All first home buyers (whether purchasing newly constructed or established homes) will benefit from a 50% stamp duty concession for homes valued up to $600,000.