The Vic Government Has Unveiled A Plan To Make Life A Tiny Bit Easier For First Home Buyers

Victorian Premier Daniel Andrews announced on Sunday that first time home buyers in the state will no longer have to pay stamp duty on properties worth up to $600,000, in an initiative designed to help more people get their foot in the door of the housing market.

Due to come into effect on July 1, the new exemption will save first home buyers $5,685 on a $300,000 home, $9,485 on a $450,000 home, and $15,535 on a $600,000 home. The scheme applies to both new and existing homes, and the state government expects it will benefit around 25,000 new home owners each year.

“In the past, if you worked hard and saved enough, you could afford to buy your own home,” said Andrews. “Now, that’s getting harder and harder.”

“With negative gearing and capital gains tax concessions, the odds are already stacked against first home buyers,” he continued. “This will help level the playing field.”

The Premier also announced a new $50 million pilot program called HomesVic, due to be introduced in January 2018, in which around 400 first home buyers will be able to co-purchase property with the state government, who will take an equity share of up to 25 per cent. The pilot program will be open to couples earning up to $95,000 per year and singles earning up to $75,000 per year.

“As rent keeps climbing, it’s getting harder and harder for Victorians to save for a deposit,” said Andrews. “By co-purchasing these properties, we’re helping them to get out of the rental market and into their own home sooner.”

Of course with median house prices in Melbourne sitting at $740,000, this doesn’t mean that the housing market isn’t still utterly cooked. Still, every little thing counts. Now if you’ll excuse me, I’m going to tuck into a celebratory smashed avo.