Before you buy your first home, here are some essential facts you need to know.
1. You can receive up to $20,000 with the FHOG
If you are buying or building a new home valued up to $750,000, you may be eligible for a First Home Owner Grant (FHOG). If you are eligible for the FHOG and the home you are buying is in regional Victoria, you will receive $20,000. If the home is not in regional Victoria, the grant is $10,000. The home must not have been previously sold or occupied to be eligible for the FHOG.
2. You pay stamp duty on your purchase
When you buy your home, you will most likely 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.
Stamp duty waiver up to 50% for residential property
You may be eligible for a land transfer (stamp) duty waiver for residential property with a dutiable value of $1 million or less, whether or not you use it as your principal place of residence.
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 exemption or concession – a one-off duty exemption for a PPR valued up to $600,000, or a concession for a PPR with a dutiable value from $600,001 to $750,000. This duty exemption/concession is separate and distinct from the First Home Owner Grant. The grant is a payment made to you, whereas the first home buyer duty exemption/concession is a reduction in the amount of land transfer duty you pay.
- First-home buyer reduction – a one-off duty reduction of up to 50% for a PPR valued up to $600,000 if you entered into your contract before 1 July 2017.
- 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.
