The Victorian Government has announced addition grants and stamp duty concessions for First Home Buyers, to apply, if legislated, from 1 July 2107. Regional first home buyer grants will rise from $10,000 to $20,000.
For anyone who has considered investing in e.g.. Ballarat or Bendigo, this is your 3 month window of opportunity to invest in one of our most successful and growing gold cities, now both 100,000 strong. Ballarat recently showed it vitality when 40,000 people turned up for it first White Night event.
While the Stamp Duty concessions ( from 50% Stamp Duty discount to 100% discount) will be good for the first home buyers there ( and the rest of Victoria), the 1 July start sate will cause a hiatus in the market. The benefits of Grants on the other hand ($10K rising to $20K) are very questionable, and are often described by in the industry as “Builders Grants”, leading to price rises.
For investors in a home under $600,000, regional buyer competition is likely to be deferred and we believe we will be able to buy better than ever for our clients who are quick off the mark. The local agents will be keen for investors and non-First Home Buyers to keep their sales ticking over.
In the longer term, the Stamp Duty Concession Grants will be real growth factors for the two gold cities, with more property buyers, and faster population growth. New houses (on the fringe) set the entry benchmark for housing, and if the $10,000 extra grant kicks up new house prices, the rest will follow.
If you are a quick-acting regional investor, email me now on mike@strategicbuyersagents.com.au