Before you buy your first home, here are some essential facts you need to know.
You can receive up to $20,000 with the FHOG
If you are buying or building a new home valued up to $750,000, you may be eligible for a First Home Owner Grant (FHOG). If you are eligible for the FHOG and the home you are buying is in regional Victoria, you will receive $20,000. If the home is not in regional Victoria, the grant is $10,000.
You pay stamp duty on your purchase
When you buy your home, you’ll most likely have to pay land transfer duty (otherwise known as stamp duty). How much you pay depends on your property’s value, what you’re using it for, if you are a foreign purchaser, and whether you are eligible for any exemptions or concessions.
There are exemptions and concessions
You may be eligible for – and receive – more than one exemption, concession or reduction from stamp duty for your property. In Victoria, these include:
- First-home buyer duty exemption or concession – a one-off duty exemption for a PPR valued up to $600,000, or a concession for a PPR with a dutiable value from $600,001 to $750,000
- Off-the-plan concession – a duty concession for an off-the-plan property, either as a land and building package, or as a refurbished lot
- Pensioner concession – a one-off duty exemption or concession for a new or established home valued up to $750,000
- Principal place of residence (PPR) concession – a duty concession for when a property you buy, valued up to $550,000, is intended as your primary home
- First-home owner with family exemption/concession – a one-off duty exemption or concession for properties valued at $200,000 or less
- Young farmer’s exemption/concession – a one-off duty exemption/concession for young farmers buying their first farmland property
Please refer to our comprehensive comparison table to understand the differences between our most common grants and concessions/benefits when buying your first home.
Digital duties form
The SRO’s digital duties form is now live and ready to be used.
The form will be mandatory in Victoria from 1 July 2017 for all property transfers. Taxpayers and their representatives must use the digital form for all contracts or agreements for land transfer duty entered into, on or after this date.
A number of resources are available to help you understand the process.