I've been keeping my eye out for the new formula for the stamp duty for first home buyers announced by the Victorian Government. Unfortunately at this stage the formula doesn't seem to be available. However, I have found examples of the new rates so for those interested, I've added a table showing some examples of the new duty rates to the Victorian Stamp Duty Calculator I've written.
There's few ways to look at the Victoria Government's stamp duty changes for first home buyers. The first negative effect is the potential to push prices higher which isn't good for many people. Currently first home owners get a 50% stamp duty discount for properties under $600,000, which is a saving of around $16,000. That means first home buyers have potentially up to $16,000 more to spend on a property.
The largest savings are when properties are just over the $600,000 meaning first home buyers could potentially save over $30,000 in stamp duty. The saving reduces as the price goes up until the saving stops at $750,000. Now first home buyers at least have a little more in their favour in the $600,000 plus range when competing against, investors. It's hard to say how much that will help as investors still get negative gearing and capital gains tax benefits which can be considerable.
Hopefully some first home buyers will benefit from the change. Facing paying off a $500,000-$600,000 mortgage is a very large task requiring quite a bit of determination.
You can find the table of example stamp duty rates at https://www.justlocal.com.au/mortgagerepaymentcalculator/stampduty/.
Kelvin Eldridge
Victorian Stamp Duty Calculator
There's few ways to look at the Victoria Government's stamp duty changes for first home buyers. The first negative effect is the potential to push prices higher which isn't good for many people. Currently first home owners get a 50% stamp duty discount for properties under $600,000, which is a saving of around $16,000. That means first home buyers have potentially up to $16,000 more to spend on a property.
The largest savings are when properties are just over the $600,000 meaning first home buyers could potentially save over $30,000 in stamp duty. The saving reduces as the price goes up until the saving stops at $750,000. Now first home buyers at least have a little more in their favour in the $600,000 plus range when competing against, investors. It's hard to say how much that will help as investors still get negative gearing and capital gains tax benefits which can be considerable.
Hopefully some first home buyers will benefit from the change. Facing paying off a $500,000-$600,000 mortgage is a very large task requiring quite a bit of determination.
You can find the table of example stamp duty rates at https://www.justlocal.com.au/mortgagerepaymentcalculator/stampduty/.
Kelvin Eldridge
Victorian Stamp Duty Calculator
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