More than most areas within Australia, Melbourne’s property market is in a constant state of change. This makes navigating the market difficult for first time buyers and investors alike, as ideal buying opportunities can fluctuate from month to month. At My Rental, we are dedicated to assisting landlords and homeowners in traversing the Melbourne property landscape. So, with that in mind, what do first-home buyers need to consider in 2018?
New Stamp Duty Measures
Stamp duty (otherwise known as land transfer duty) measures for first-home buyers have been altered across Victoria. This change affects those that have purchased their first home under contract on or after 1st July 2017. The introduction of these stamp duty saving measures includes concessions of up to $750,000 and exemptions of up to $600,000 for those purchasing their first home in Melbourne.
To be eligible for these concessions and exemptions, your purchase must:
- Take place on or after July 2017.
- Have a dutiable value of $600,000 or less (for First-Home Buyer Duty Exemption) or between $600,001 – $750,000 (for First-Home Buyer Duty Concession).
- Meet the purchaser’s criteria for First-Home Owner Grant eligibility.
- Must have at least one purchaser that satisfies the residency requirement (visit the State Revenue Office of Victoria website for more information and exemptions for defence force personnel).
Drops in Median House Price
With median house prices currently sitting at $882,082 at time of writing, the largest overall price drop since 2012, now is an excellent time for first-home buyers in Melbourne to start planning out their budgets. The worst performing regions in this regard are those situated in the inner-east, such as Kew and Balwyn. This dip has come after several years of increased housing prices, with many believing that this is due to an overabundance of homes being placed on the market.
Tips For First-Home Buyers in Melbourne
Given the initiatives currently in place to assist first-home buyers in Melbourne, coupled with an approximate 2% drop in median house prices, first-home buyers are in a desirable position. With that in mind, there are still things that you can do to further ensure that you’re getting the best deal. These include:
Understanding Your Needs
Unlike investors, who are primarily looking at factors that will impact their return on investment, those who are planning on living in their homes have other details to consider. For example, what are your requirements in regard to location? For buyers with families, the number of bedrooms and bathrooms will also be an important thing to consider. Are there schools in the area? Each buyer is going to have different needs, and it’s vital that you take these into consideration throughout every step of the process.
Setting Your Budget
By knowing your budget well in advance, you are giving yourself well-established parameters for what you can afford. While working out what you can afford, it’s important to research which exemptions, concessions, and loans are currently available to you for a more thorough overview of your prospective properties.
Avoiding Suburb Stringency
When dipping your toes into the market for the first time, it’s natural to have a handful of suburbs to focus on. With that said, sticking to this shortlist too steadfastly is unlikely to get you the best deal, especially when focusing your search on popular areas. By expanding your reach to surrounding suburbs, you’re giving yourself a wider pool of options to choose from, and is therefore more likely to provide you with better results.
Are you looking for an experienced property manager in Melbourne? At My Rental, our team is dedicated to providing an innovative, streamlined property management experience that provides landlords with unmatched control over their properties. To learn more, contact us today!