VICTORIA FIRST HOME OWNER GRANT (FHOG)
If you are a first home buyer planning buying a home in Melbourne and Victoria, here is what you need to know.
In Victoria, the Victoria Government understands that first home buyers are feeling that buying their first home is almost impossible with the fast growing house prices.
Here are some of the initiatives implemented to make it easier for first home buyers to buy a home.
These information are condensed from a combination of the Victoria Government and VIC State Revenue Office (SRO) sources.
First Home Owner Grant (FHOG)
A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home.
The FHOG is $20,000 for new homes built in regional Victoria, for contracts signed from 1 July 2017 to 30 June 2020.
Your first home can be a house, townhouse, apartment, unit or similar but it must be valued at $750,000 or less, be the first sale of the property as residential premises and the home must be less than five years old.
It cannot be an investment property or a holiday house.
The FHOG may be paid in addition to other exemptions or concessions for eligible homebuyers.
The timing of your FHOG payment depends on the contract you sign to buy or build your new home, and whether you lodge your application directly with us or via an approved agent.
Stamp Duty Removed or Reduced
Stamp duty has been abolished for first home buyer and buying a house for $600,000 or less.
If you’re buying a home for between $600,000 and $750,000 we’ve tapered the stamp duty. It is zero at $600,000 then increases slightly as the cost of the home increases to $750,000.
Young Victorian farmers will continue to be eligible for a stamp duty concession on the purchase of their first farm.
Stamp Duty Concession for Off the Plan Purchases
In Victoria, if you buy off the plan, you only pay stamp duty on the land the property is sitting on.
Until July 2017 this applied to investors as well as people who planned to live in the finished building. The concession was called the OTP concession.
The concession is now only available if you are buying the property as your main home, or if you qualify for first home buyer stamp duty concessions. It is now called the PPR OTP concession. PPR stands for principal place of residence.
Are you eligible? Read on.