Thousands of first home buyers cash in on revamp stamp duty costs

Treasure Tim Pallas has hailed new statistics that he says is “proof” that the Victorian Government’s revamped stamp duty costs are helping more people enter the property market.

More than 62,000 Victorian first home buyers have cashed in on $1.3 billion in savings, following a revamp of the state’s stamp duty costs.

Treasurer Tim Pallas revealed the statistics from the past two years today, saying it was proof that initiatives introduced in 2017 by the state government were helping people enter the property market.

“What we are seeing and probably the most dramatic demonstration that the policy is working, has been the fact that we have seen a 10 per cent increase in first homeowners in the market,” Mr Pallas said.

“They are about 22 per cent of the purchasing market nowadays, so we are seeing a great outcome.”

According to Victorian Government figures, more than 62,000 people claimed stamp duty concessions and exemptions — which apply to first homes costing $750,000 or less.

A further 17,000 took up the First Home Owner Grant — which provides a one-off payment of $10,000 or $20,000 for regional properties.

Sarah Amos, 29, is a property stylist, who benefited from the changes.

“I am a first homebuyer and my husband and I bought a townhouse off the plan out in Craigieburn, which will be finished in about three months.

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“I think the first homeowners grant has shaved off a good one to two years off of our savings timeline.”

Ms Amos said the “thousands” of dollars saved by the couple had helped pay for their wedding.

The most popular areas for first home buyers under the scheme are Craigieburn, Donnybrook, Roxburgh Park, Kalkallo, Mickleham, Hoppers Crossing, Tarneit and Truganina.

At the time the changes were introduced property prices were rising quickly resulting in billions of extra dollars in government revenue.

However, the market has recently cooled, which is a factor many experts are saying is also helping first home buyers get a foot in the door with investors less active in the market.

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