Understanding Government Grants and incentives when buying a property in Victoria

Buying a property in Victoria can be a significant financial commitment, but the good news is that there are various government grants and incentives designed to help both first-time homebuyers and existing homeowners. Understanding these grants and incentives can reduce the cost of purchasing a home and make the process smoother. In this blog, we’ll break down the key Victorian property grants, incentives, and stamp duty exemptions available to help you navigate the home-buying process.

First Home Owner Grant (FHOG)

One of the most well-known property incentives is the First Home Owner Grant (FHOG). If you are buying your first home in Victoria, you may be eligible for a one-off payment of $10,000 under certain conditions:

• The home must be newly built.
• The property must not have been previously sold as a residential home, occupied, or rented out for long-term or short-term stays.
• The property’s value must not exceed $750,000.
• You (and your partner) must not have owned a residential property in Australia before.
• Ensure at least one applicant will reside in the home as their principal place of residence for a continuous period of at least 12 months commencing within 12 months of completion of the eligible transaction.

This grant is a great way for first-time homebuyers in Victoria to ease the financial burden when buying a home, especially for those interested in new developments or building their own home.

For more information on the First Home Owner Grant visit the SRO website here.

Land Transfer Duty (Stamp Duty) Exemptions and Concessions

Stamp duty is a major cost when purchasing property, but in Victoria, there are a range of stamp duty exemptions and concessions available for eligible buyers. These include:

First Home Buyer Duty Exemption: First-home buyers purchasing a property valued up to $600,000 may be eligible for a full exemption from stamp duty. Properties valued between $600,001 and $750,000 may qualify for a concession - this is a sliding scale concession

Off-the-Plan Concession: If you’re purchasing an off-the-plan property (e.g. an apartment), you could be eligible for a stamp duty concession. The duty is calculated on the property's value at the time of the contract, excluding construction costs.

Principal Place of Residence (PPR) Concession: For homebuyers who intend to live in the property, Victoria offers a concession on stamp duty for homes valued up to $550,000.

First Home Loan Deposit Scheme (FHLDS)

The First Home Loan Deposit Scheme is a national incentive available to first-time homebuyers in Victoria. Under this scheme, eligible buyers can purchase a property with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI), which can be a significant cost. The government guarantees the remaining 15%, which reduces the need for a larger upfront deposit and helps buyers enter the property market sooner.

Visit the Housing Australia website here for more information and to see if you qualify.

Seniors and Pensioners Duty Concession

Victoria offers a stamp duty concession for seniors and pensioners looking to buy property. If you are aged 60 or over and eligible for a Commonwealth Pensioner Concession Card, you could receive a full or partial concession on stamp duty for properties valued up to $750,000. This concession can help older Australians downsize or relocate without the financial burden of full stamp duty costs.

To find out more visit the SRO website here.

Understanding the full range of government grants and incentives available when buying property in Victoria can significantly reduce your upfront costs and make homeownership more accessible. From the First Home Owner Grant to stamp duty exemptions, there are many ways to take advantage of these programs and get a head start on your property journey.

When considering a property purchase, it's crucial to check your eligibility for these grants and concessions. Consult with a professional financial advisor or mortgage broker to ensure you’re maximising the benefits available to you.

Disclaimer: Cedar Woods gives no warranty concerning the accuracy of the material or information displayed in this blog. Prospective buyers should make their own enquiries and rely on their own investigations and independent advice. All information in this blog is subject to Terms of Use accessible at www.cedarwoods.com.au/Terms-of-Use.