With the new financial year almost here, savvy first-home buyers are poised to act to take advantage of the new stamp duty cuts amid tightened conditions for investors.
From July 1, first-home buyers purchasing a property under $600,000 will not pay a cent in stamp duty, and for property worth between $600,000 and $750,000 there will be a sliding scale of discounts, regardless of whether it is a new or existing home.
When compared to other buyers, these stamp duty savings can amount up to an additional $31,070 in a first-home buyers pocket - a significant saving that can be used to increase the equity in their home, reduce their mortgage repayments or potentially purchase sooner.
The Victorian Government estimates these savings will benefit around 25,000 first-home buyers each year, or around 20 per cent of all property buyers in the state. First-home buyers who purchase a newly constructed property in Melbourne for under $600,000 will also be eligible for the $10,000 first-home owner grant.
Lucas Sales Director Chris Henson says, “many first-home buyers have been waiting to buy in order to qualify for the stamp duty savings. These additional savings will help give first-home buyers an advantage over investors, and allow them to end their property search sooner. With the winter property market typically a little slower, first-home buyers will find plenty of choice in the next few months before the traditional spring buying season commences.”
For those first-home buyers who are still in the process of saving for their first home, saving will also become easier in the new financial year. From July 1, all Australians will be given the option to save for their first-home through salary sacrificing into their superannuation – enabling them to fast track their deposit by paying less tax. This salary sacrifice of up to $15,000 a year, to a total of $30,000 from pre-tax income, will attract the same tax benefits as superannuation, and is expected to leave savers about 30 per cent better off overall than if they had saved through a traditional savings accounts.
To find out more how these changes can benefit you in buying your first-home or for any assistance with purchasing, contact your local property experts on 9091 1400.