A string of new options being provided to those looking to buy homes in Victoria were announced on Sunday by Premier Daniel Andrews.
The housing package announced includes scrapping stamp duty for home purchases under $600,000, taxing vacant housing stock and a shared ownership plan with the government so buyers don't need as big a deposit.
This announcement comes just days after the government announced formation of 17 new suburbs in Melbourne and doubling the first Home Owners’ Grant in regional Victoria.
Lets take a look at all the schemes in details:
Victorian Premier Daniel Andrews Source: AAP
STAMP DUTY ABOLISHED FOR PROPERTIES VALUED BELOW $600,000
Stamp duty will be abolished for first home buyers purchasing a property valued below $600,000, the said.
From July discounts will also be available for property purchases between $600,000 and $750,000 on a sliding scale, regardless of whether they are new or established homes.
VACANT HOUSES WILL BE TAXED
To make housing more affordable, the on vacant residential property to target empty properties in Melbourne's inner and middle suburbs.
"This will send a really strong message to people that if you are effectively banking an empty property and denying that to the market and contributing to the lack of supply, then there's something you can do about it," Premier Daniel Andrews said.
SHARED OWNERSHIP SCHEME, HomesVic
A new $50 million pilot scheme, , will target first home buyers who are able to meet regular mortgage repayments, but because of rising rental costs, haven’t been able to save a big enough deposit.
Under the scheme, to be introduced in January 2018, HomesVic will co-purchase up to 400 homes, taking an equity share of up to 25 per cent in these properties.
It will be available for both new and existing homes.
By allowing homebuyers to purchase less than 100 per cent of the property, they will require a smaller deposit and are able to enter the market sooner. In the long term, it will also mean having a smaller loan to service.
Eligible applicants will include couples earning up to $95,000, and singles earning up to $75,000.
Buyers will need to have a 5 per cent deposit.
The pilot will be tested across the state, and when the properties are sold, HomesVic will recover its share of the equity.
Premier Daniel Andrews said, “As rent keeps climbing, it’s getting harder and harder for Victorians to save for a deposit. By co-purchasing these properties, we’re helping them to get out of the rental market and into their own home sooner.”
Buy Assist GIVES PRIORITY TO FIRST HOME BUYERS IN GOVERNMENT LED DEVELOPMENTS
The state government will contribute $5 million to this national, community sector, shared equity scheme, Buy Assist.
Buy Assist will help deliver an additional 100 shared equity homes and help low to medium income households get a foothold in the property market.
The Government is also set to give first home buyers priority in government-led urban renewal developments, with at least 10 per cent of all properties allocated to first time buyers.
This approach will be used for the first time at the Arden development.
The plan to develop the 56 hectare site Arden, announced by the state government last year, could be home to around 15,000 people. Under this policy 1,500 of those could be first home buyers.
The Government will also consult with first home buyers, industry and the community about the design and implementation of measures to support first home buyers in private developments, especially those close to jobs and transport.
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