Buying your first home is a significant investment, so it’s important to understand your financial responsibilities and explore the Government help available to you. Before you buy your first home, here are some essential facts to get you started…
1. You can receive up to $20,000 with the FHOG
2. You pay stamp duty on your purchase
3. There are exemptions and concessions
- First-home buyer duty exemption or concession – a one-off duty exemption for a PPR valued up to $600,000, or a concession for a PPR with a dutiable value from $600,001 to $750,000. This duty exemption/concession is separate and distinct from the First Home Owner Grant. The grant is a payment made to you, whereas the first home buyer duty exemption/concession is a reduction in the amount of land transfer duty you pay.
- First-home buyer reduction – a one-off duty reduction of up to 50% for a PPR valued up to $600,000 if you entered into your contract before 1 July 2017.
- Off-the-plan concession – a duty concession for an off-the-plan property, either as a land and building package, or as a refurbished lot.
- Pensioner concession – a one-off duty exemption or concession for a new or established home valued up to $750,000.
- Principal place of residence (PPR) concession – a duty concession for when a property you buy, valued up to $550,000, is intended as your primary home.
- First-home owner with family exemption/concession – a one-off duty exemption or concession for properties valued at $200,000 or less.
- Young farmer’s exemption/concession – a one-off duty exemption/concession for young farmers buying their first farmland property.
Please refer to the comprehensive comparison table to understand the differences between the most common grants and concessions/benefits when buying your first home.
Additionally, as the ongoing owner of a property in Victoria, you may also have to pay various annual taxes and levies, such as the 1.5% absentee owner surcharge.