Melbourne: Home Buying Costs To Fall

The costs associated with buying a house are due to fall in Victoria this year.

Stamp Duty will be cut and The First Home Bonus – a payment from the state to first time buyers – will be extended

The changes apply to homes of principal residence bought from 1 January 2007 onwards. It is hoped the changes will have a positive effect on the housing market in the coming months.

Stamp Duty Cut

The duty concession cuts the rate of duty for homes priced above $115,000 and up to $500,000 purchased as a principal place of residence. (PPR)

Stamp duty for houses priced between $115,000 and $400,000 is cut from 6 percent to 5 percent. Properties priced between $400,000 and $500,000 will have stamp duty cut by a total of $2850.

First Home Bonus Extension

The $3000 First Home Bonus is to be extended until 30 June 2009 for established homes; and the First Home Bonus increases to $5000 for new residential premises. This is to apply until 30 June 2009.

Note: First time buyers will need to choose either the stamp duty concession or the First Home Bonus. They cannot receive both.