Some Welcomed Incentives for First Home Buyers
Incentives for First Home Buyers
July 1st brings first home buyers some welcomed incentives. The initiative is 2-fold and offers advantages to those purchasing existing homes, along with new builds. It will give first home buyers a helping hand, by reducing the upfront costs of purchasing a home. The exemption and concession are applicable to contracts signed from 1st July 2017, not for homes purchased before and settling after this date.
How it works!
First home buyers purchasing properties valued below $600,000 will be exempt from paying stamp duty. Purchases between $600,000 and $750,000 will receive a concession on a sliding scale. The first home owners grant will be increased from $10,000 to $20,000 for new house purchases in regional areas, the City of Greater Geelong is classified as a regional area. This allows for new home builds and purchases of values up to $750,000.
The criteria to qualify for the exemption or concessions will be closely policed by the State Revenue Office and they can be contacted on 13 21 61 for criteria clarification.
This announcement has a positive influence on the market both pre and post implementation. An increase in competition will occur immediately upon the 1st of July, however the positive influence on pricing occurred almost immediately at the time of the announcement. Buyers wishing to avoid the increase in competition post July 1st, have been extremely active in ensuring they can secure a property now. This alone has generated a surge in activity, that will maintain momentum for the ensuring months. I would anticipate that in and around Geelong the properties that will see an initial surge in value will be those up to $450,000- $500,000, with the flow on affect filtering through to the $600,000 – $800,000 range happening within 2-3 months there on after.
On the surface this is a positive for the first home buyer, however it may have an adverse effect in pushing pricing up and making the dream of securing your first home just that little more expensive.