Mornington Peninsula First Home Buyers



The reduction and exclusion on stamp duty for first home buyers was a welcome policy for real estate agents, as this has enabled many more of these types of potential buyers to enter the market. There are some key variables you may need to be aware of before you explore this opportunity for yourself. First Home Buyers: You have to live in the property Often something that catches potential first home buyers off guard when considering the First Home Owners Grant and also the new stamp duty reductions introduced in July 2017 is that if you intend to purchase this property as an investment to rent out, you may hit a snag. Both the FHOG and stamp duty reductions and exclusions require you to reside in the property either initially, or within the first 12 months of purchasing for at least 12 months. If you have a long-term investment strategy, this may not be such a problem. We find first home buyers tend to move into their newly purchased home, and then have plans to extend their property portfolio further. They achieve this by either moving back to their childhood homes with their families to save or living another way that enables them to save considerably faster, while still building equity in their property with a tenant and property value increases. First Home Buyers who are purchasing with another person There is often a lot of confusion surrounding purchasing a home with another person. Often first home buyers can be couples looking to purchase a home together, but there are some variables to keep in mind if you intend to purchase with another person. Even if you buy with someone else, at least one of you must satisfy the residency requirements as discussed earlier. This is important to note when considering making a binding agreement and making such an important purchase with another person, regardless if you are in a relationship or not. If things were to turn sour, a lot of young people find themselves in the predicament of having to continue living in a home that may have been the product of a tumultuous period of their lives. You must notify the State Revenue Office of any changes in your circumstances that may result in you being unable to meet the residence requirements of either the FHOG or the stamp duty exemptions or reductions. If you want to find out more about options for first home buyers, speak to the team at Eview Mornington Peninsula on 5971 0300.

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