Stamp duty is being reduced further to 50% for first home buyers in Victoria
Nigel Abery (PhD), Mortgage Broker at Oak Laurel.
The Victorian Government is offering eligible first home buyers a reduction of stamp duty when they purchase a new or established home. The reduction in stamp duty applies when you buy your principal place of residence valued at or less than $600,000.
Under the scheme the current stamp duty is being axed be to 50% from 1 September 2014. Eligible first home buyers must reside in the property for 12 months continuously within 12 months of settlement. This is separate from the First Home Owners Grant. First Home Buyers may also be eligible for the First Home Owners Grant if they are purchasing a new property.
Is the stamp duty reduction available on land purchases?
No, as land will not be considered a principal place of residence and you will need to pay the full price of Stamp duty. If you then enter a contract with a builder for the construction of a property on the land and receiver the First Home Owner’s Grant you can then apply for a rebate on the Stamp Duty.
If you are looking to purchase your first home contact a mortgage broker for more information.