The start of 2103 has seen the introduction of further stamp duty reductions for first home buyers. This will provide a welcome boost for those looking to enter the marketplace for the first time. This will be particularly relevant to the Cranbourne and surrounding areas where a large percentage of buyers fall into this category. At present a 20% discount is available for first home buyers but from the 1st of January this discount will increase to 30%.
For those buying their first home and meeting the eligibility criteria, if the settlement is 1st January or later, the increase will apply. It is the settlement date that will be relevant, rather than the date the contract was signed.
Some of the other key requirements for the reduction in stamp duty are that the total purchase price must not exceed $600,000, it must be the first home and you must live in it as the primary place of residence.
The savings are quite substantial and will be a good incentive to new buyers entering the marketplace. Coupled with this reduction is the current low interest rates which makes buying a property at this time an very viable option for many first home buyers.
For more information about the stamp duty reductions visit the State Revenue Office website at www.sro.vic.gov.au