Before you buy your first home, here are some essential facts you need to know.
1. You can receive $10,000 with the FHOG
If you are buying or building a new home valued up to $750,000, you may be eligible for the First Home Owner Grant (FHOG).
2. 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.
3. 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 reduction – a one-off duty reduction for a PPR valued up to $600,000
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.
Additionally, as the ongoing owner of a property in Victoria, you may also have to pay various annual taxes and levies, such as the 0.5 per cent absentee owner surcharge.
For more information go to Victoria's State Revenue Office