An exciting time lies ahead for prospective first home buyers, with the announcement in this year’s state budget of an increase from $10,000 to $20,000 for the regional First Home Owner Grant.
Ballarat Property Group director Daniel Nestor said the burden of stamp duty has also been lifted for all first home buyers.
“Whether you’re purchasing a new or existing dwelling, stamp duty has been abolished (up to purchase price of $601,000, with a concession available between $601,000 and $750,000).”
Members of the Australian Defence Force are eligible for the FHOG regardless of whether the property is owner occupied. “Coupled with record low interest rates, it begs the question – has there ever been a better time to enter the market as a first home owner?,” said Daniel.
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With an abundance of land for sale and multiple developers/estates competing for business, especially in Ballarat’s western growth zone, Daniel said land is competitively priced and readily available. “The buying power of volume builders has been further enhanced in recent times, and this has translated to some fantastic deals offered by builders fighting for your signature at various display villages.”
Daniel noted that those who’ve already purchased a block of land with plans to build their first home in the near future need not worry. “First home buyers who have already purchased and settled, or signed contracts to purchase land, will also be eligible for the $20,000 FHOG if they sign building contracts after July 1.”
So if all the first home buyers are waiting it out for after this date, who should be buying now?Investors, according to Daniel. “At present, if you purchase ‘off the plan’ (pre-completion of construction), you can save stamp duty on the unconstructed portion, regardless of building purposes or type. From July 1, this will only apply to purchasers intending to owner occupy the property from settlement. Residential and commercial real estate investors looking at off the plan purchases, the next six weeks is your time to take advantage of stamp duty savings before they are gone.”
Daniel said the overwhelming FHOG feedback agents are receiving in the marketplace is that there is confusion regarding these changes. At Ballarat Property Group, agents are well educated on the topic, so for clarity surrounding your first property purchase, call one of the experienced sales staff today.