"In Vic the stamp duty is less if the property is principle place of residence"
From 1 January 2007, it has become a little easier for many families to buy a home as the State Government has cut stamp duty.
Late December 2006 the State Government passed legislation to implement the changes for the start of 2007. The changes affect principal places of residences (PPR) that are purchased for under $500,000. The Government has also extended the first home buyers bonus (FHBB) and will provide an additional $2,000 for first home owners building their home. First home buyers are eligible for the FHBB or the concession stamp duty rate, but not both.
Buyers who are not eligible for the first FHBB but are purchasing a PPR will also benefit as the stamp duty rate for property valued between $115,000 and $400,000 has been cut from 6 per cent to 5 per cent. Between $400,000 and $500,000 the stamp duty payable is reduced by a flat $2,850.
First home buyers no longer face the prospect of the State Government subsidy reducing from $10,000 to $7,000 in June this year, as it has now been extended until June of 2009.
The State Government has also introduced an extra $2,000 of assistance for first home owners that are building their first home. This means that the first home owners are now eligible to receive up to $12,000 in grants from the Government.