Upcoming Changes in Victoria’s Real Estate Landscape
Housing affordability in Victoria has been a topic of concern across the state in recent years, with many worried that we are becoming more like Sydney as each year goes by — itself one of the most unaffordable cities in the world when it comes to housing.
However, it appears that the Victorian government has been taking heed of the issues facing first home buyers. In the last few weeks, Victorian Premier Daniel Andrews has announced a range of new initiatives aimed at boosting housing affordability while simultaneously spurring growth in regions of the state that the government has designated as ‘growth areas’. To achieve this, Andrews has announced cuts to stamp duty as well as initiatives to bolster development in regional Victoria.
No more stamp duty?
For first home buyers who are worried about the affordability of housing in Victoria, there is light at the end of the tunnel in the form of cuts to stamp duty. A few weeks ago, Andrews announced that first home buyers purchasing property worth less than $600,000 would be exempt from paying stamp duty for both new and existing homes, potentially amounting to up to $15,000 in savings. Buyers purchasing homes that cost between $600,000 and $750,00 will also benefit from reduced rates of stamp duty.
However, with median house prices in Melbourne being $770,000, the new changes may not make much of a difference for first home buyers competing in more competitive areas — and many say that it does not do enough to address the root of the problem, which is the fact that house prices continue to grow rapidly year after year. To take advantage of the scheme, first home buyers will likely have to look to outer suburbs in Melbourne as well as rural Victoria, which leads to our next point…
The new frontiers of Victorian real estate
The changes to stamp duty come on the back of the Andrews government’s announcement that it is looking to the develop of the outer regions of Greater Melbourne, adding of 17 new suburbs to the city’s outer north and west. The government has also declared that the First Home Owner Grant will be doubled to $20,000 for those buying new homes in regional Victoria, making the countryside a more appealing prospect for young families.
Talk to O’Brien Real Estate today for more information about how you can take advantage of the changes to the real estate market in Victoria.