Hi All,
I am a Developer from the eastern suburbs of Melbourne.
Most my units are targeted at FHO.As far as I know here in Victoria the FHOG for new dwelling is $20K ($7K Federal+$13K State) and is going to be canned come 1st July 2011.
What are thoughts???
Will they extend or not??
John
JLtarra wrote:Will they extend or not??
John
Good day John. As to whether they will extend it or not is anybody's guess. The FHOG was widely seen as being ineffective in helping FHB get on the property ladder, and if the officials are listening, it's likely they will pull the plug on it. Instead, they are putting stamp duty cuts in place. In my opinion this would have a similar effect to the FHOG, except to a smaller degree since the amount subsidised is going to be smaller.
Hi fword,
Do you know the size of the stamp duty cuts? Obviously it wont be anything like the $20K FHOG offered by state (Vic) and federal government considering most FHB homes bought are paying around $20-$25K in stamp duty. One would assume it will be a percentage of this amount.
John
John,
You can breathe a little easier now the time being. At the moment the current plan is to continue with the first home owners bonus of $13k. Of course, on top of that there is the federal governments FHOG of $7k. therefore after june 30 first home buyers will still be able to get access to this money. additionally, the government is introducing cuts in stamp duty. for the first year it will be a 20% cut in stamp duty and will progressively go up until if gets to a 50% cut in september 2014. I too was somewhat worried about it going because I am still eligable. while i agree with fword in that it doesnt help with buying your first property greatly, at the end of the day, i get and extra $20k that i wouldnt have otherwise recieved.
further info can be found here here and here
http://zincip.biz/2011/05/05/victorian-budget-good-news-for-home-buyers/
also, just to add a little more, the cut in stamp duty is rather pointless IMO. for a purchase of $300k, it is a saving of $2274 at 20% and $5685 at 50%. however, you are only entiatled to the state governaments extra $13k if you are building a new dwelling. generally speaking, most first home buyers wouldnt be able to afford buying a $300k block of land and then proceed to build a house on it, which could cost up to $300k. therefore if one buys a block of land for, lets say $150k, then the stamp duty savings are $1137 and $2843 respectively. hardly enough to get someone into the market,
I agree, it will only benefit if the FHO that buys something new where they will recieve the $20K + the SD savings!
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