With the median house price in Melbourne nudging $800,000 in a real estate market which is getting increasingly difficult for first home buyers to get a foot in the door, there may be some good news for those looking to buy their first home.
The Victorian government is set to unveil a plan that will make buying the first home cheaper by thousands of dollars. According to a , the Andrews Government plan will not require first home buyer to pay stamp duty on houses worth up to $600,000.
The plan which is likely to take effect in July this year, will have a home buyer save close to $10,000 in stamp duty on a 450,000 home.
The government is also reportedly introducing a $50 million pilot program in January next year to help people co-purchase a home with the government, which will offer to take an equity share of up to 25 per cent for each property. The plan will reduce the deposit that a first home buyer currently has to pay.
The couples earning up to $95,000 and singles earning up to $75,000 will be able to buy homes with just 5 per cent deposit under the plan.
"First home buyers are facing more hurdles than ever.
"They're battling rising prices, they're competing against investors and they're up against federal government policies that advantage existing owners. These changes will help level the playing field," The Age quoted Premier Daniel Andrews as saying.
Earlier in the week, the government made an announcement to double the first home owner grant, from the current $10,000 to $20,000 for those buying homes in regional Victoria, besides unveiling 17 new suburbs in Melbourne to unlock 100,000 lots to boost land supply.
