Victoria has just released a number of new policies for investors and first time home buyers to rebalance the Australian real estate market.
Premier Andrews has just released some important decisions that will apply from 1 July 2017. These policies will be beneficial to people in Melbourne and Victoria, and will also change the investment strategy of foreign investors.
Australian real estate tax exemption below AUD 600,000
According to a March 6 announcement, the Victorian government will exempt registration tax from first-time Australian residents who are worth less than AUD $ 600,000. With this new decision, Victorian people can soon realize their dream of owning a home.
Mr Andrews expects about 25,000 Victorians to enter the Australian real estate market. With this law, homebuyers can save around $ 15,000 – $ 25,000 AUD, giving them an extra balance so they can purchase more equipment for their home such as furniture, beds, cabinets, kitchen appliances. This is how the government assists families, especially young families, to escape the rent.
The Australian Government will also offer first home owner incentives worth $ 600,000 – $ 750,000 AUD. Offers vary according to state regulations.
For the Victorian government, if Victorian people buy their first-time home purchase in the state’s rural areas, the amount of home-purchase assistance will increase from $ 10,000 to $ 20,000 AUD. New incentive laws will take effect for homebuilding contracts signed between July 1, 2012, and June 30, 2012. It is expected that this plan could help 6,000 people buy their first home.
The Victorian countryside list includes: Barwon South West region, Gippsland region, Grampians region, Hume region, Loddon Mallee region. Cities in the Victorian region: Ballarat regional city, Bendigo regional city, Geelong regional city, Horsham regional city, Latrobe regional city, Mildura regional city, Shepparton regional city, Warrnambool regional city, Wodonga regional city.
Apply tax on blank Australian property (absent)
In response to the speculation that the homeowners would then be left blank to await the chance to increase the sale price, as the current amount of about 80,000 units, the Victorian government will impose a 1% tax on the investors. Are vacant to help balance supply and demand in the market.
Accordingly, this tax will begin to apply from 1 January 2018, aimed at absentee landlords, leaving the home vacant for more than 6 months, except in cases where there is good reason to vacate any premises. Property such as a home for travel, homeowner who has a primary residence elsewhere or a landlord has died … This policy will stimulate real estate owners who do not exploit to participate in the market. School leases, avoid the situation of people lacking housing to rent.
These policies are part of the Labor Party’s plan to give Victorian people the opportunity to own housing and also have a significant impact on the Australian real estate market. Investors should note this in order to have a proper and effective investment strategy. Please contact our company for more details.