With so many Government incentives around for first home buyers at the moment and interest rates at an all time low, I thought it would be a great idea to write a couple of newsletters outlining how these incentives might benefit you or someone you know depending on the type of property you are looking to purchase.
In this update I will be providing some detail around an established house based in a suburb of Victoria – 9 Bolton Court, Langwarrin – price range of $555,000 to $610,000. It is a well presented house on a large block close to a major freeway which has easy access to the city and is on the doorstep of the Mornington Peninsula.
The first thing to note that because this is an established house you would not be eligible for the First Home Owners Grant in Victoria as the criteria for this grant states that you must be buying or building a new home.
The good news however, is if you were able to get this house for $600,000 or less you could still be eligible for the First Home Loan Deposit Scheme and Stamp Duty Exemptions.
So let’s assume for this example that you were able to secure the property for $600,000 which is at the top end of the maximum property price threshold for the First Home Loan Deposit Scheme (in capital city & regional centres) and one-off duty exemption in Victoria, you could potentially be saving in the vicinity of approximately $52,000. See following for where I have come up with this figure:
• One-off duty exemption – the purchase stamp duty on a home in Victoria worth $600,000 is approximately $31,000
• Lenders Mortgage Insurance (LMI) – because this can vary across lender and scenario I have based this amount of LMI on a middle range price of $21,000
Disclaimer: This information is for illustrative purposes only. This scenario is not intended to predict actual results, which may differ from those reflected in this scenario.
The scenario does not consider your financial situation, needs and objectives. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal; tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.
