Victorian Budget 2021: Stamp duty temporarily slashed by up to 50% for new homes

This article was originally published on iBuildNew.com.au and has been reproduced here with permission. It will be updated as new information is released. 

Christmas has come early for Victorian homebuyers. In yesterday's 2021 budget announcements, The Victorian Government revealed it is set to inject a record amount of investment into housing and planning. The investment is expected to reinvigorate the Victorian housing market, which has taken a hit following the summer bushfires and the restrictions put in place due to COVID-19.

“This budget will get more people into their new homes and guarantee Victoria’s livability for generations to come. It’s a shot in the arm for the housing industry and will lock-in economic activity and secure Victorian jobs,” said CEO of UDIA Victoria Danni Hunter. (Source)

The big-ticket items in this budget for homebuyers include:

• A stamp duty waiver of 50% for newly built or off-the-plan properties valued up to $1 million, for contracts entered between 25th of November 2020 and 30th of June 2021
  
  
• Existing homes will be eligible for a 25% stamp duty waiver

A $500 million Victorian Homebuyer Fund will also be launched. The fund will contribute to the purchase price in exchange for equity in the property. The plan has been developed to reduce the size of the deposit needed to buy a new home and will be put in place for those who do not have a 20 per cent deposit.

The government also announced an extension of the $20,000 First Homeowner Grant for those buying or building a new home in regional Victoria. The grant has been extended to apply to contracts signed up to 30th of June 2021.

Now is the perfect time to take advantage of this stamp duty waiver and the other incentives on offer in your state. You can check them all out here.

If you’re not sure where to begin, don’t hesitate to get in touch with one of our property experts, who can help guide you through your options and the process. Click below to get started.