With over 170,000 first home buyers in Victoria benefitting from various exemptions and concessions since last July, first home investors could find themselves a bargain if they’d play their cards right.
According to the Real Estate Institute of Victoria, nearly 14,000 first home buyers in the state paid no stamp duty for the last eight months, which is available for purchasing both new and established homes priced under $600,000, and 3,200 received reductions to stamp duty.
In addition, more than 2,000 received the First Home Owner Grant, which can grant a bonus $10,000 to buyers, with the ability to be doubled up to $20,000 for regional areas, when purchasing a newly built home for under $750,000.
In order for first-time investors to capitalise on these bonuses, they will need to live in the property for a year, which should be factored into when considering investing; investors would need to give up a year of rent to shave off savings off the price.
Gil King, REIV CEO, said regional Victoria presents an environment where first home buyers can take advantage of these bonuses.
“The latest REIV data showing the vast majority of towns have median house prices below the $600,000 bracket required for the removal of stamp duty,” Mr King said.
Various Greater Geelong suburbs can also be purchased into under the $600,000 First Home Buyer Grant limit, which include Corio at $311,000, North Geelong at $435,000, Armstrong Creek at $441,500 and at $502,000.
“Multiple towns within commuting distance of the city also recorded median prices below the $600,000 threshold, including Wallan on Melbourne’s outskirts which has a median house price of $430,000,” Mr King said.
“Bacchus Marsh and Kinglake were also within reach for many first-time buyers with median house prices of $422,500 and $490,000 respectively. Bacchus Marsh is 57km north west of Melbourne while Kinglake is just 46km north east of the city.
“Located 60km north of Melbourne, Kilmore is another regional town that offers affordability for first homebuyers with a median house price of $402,500.”