First home Buyer information

Buying your first home is a major financial decision so it’s important to understand your financial responsibilities and what help is available to you

1. You can receive up to $20,000 with the FHOG
If you are buying or building a new home valued up to $750,000, you may be eligible for a First Home Owner Grant (FHOG). If you are eligible for the FHOG and the home you are buying is in regional Victoria, you will receive $20,000. If the home is not in regional Victoria, the grant is $10,000.

2. You pay stamp duty on your purchase 
When you buy your home, you'll most likely have to pay land transfer duty (otherwise known as stamp duty). How much you pay depends on your property's value, what you're using it for, if you are a foreign purchaser, and whether you are eligible for any exemptions or concessions.

3. There are exemptions and concessions
You may be eligible for – and receive – more than one exemption, concession or reduction from stamp duty for your property. In Victoria, these include:

• First-home buyer duty exemption or concession – a one-off duty exemption for a PPR valued up to $600,000, or a concession for a PPR with a dutiable value from $600,001 to $750,000

• First-home buyer reduction – a one-off duty reduction of up to 50 per cent for a PPR valued up to $600,000 if you entered into your contract before 1 July 2017

• Off-the-plan concession – a duty concession for an off-the-plan property, either as a land and          building package, or as a refurbished lot

• Pensioner concession – a one-off duty exemption or concession for a new or established home valued up to $750,000

• Principal place of residence (PPR) concession – a duty concession for when a property you buy, valued up to $550,000, is intended as your primary home

Investment property data for 1 bed units
• Annual growth  1.1%
• Median price   $335K
• Median rent    $350/wk
• Rental yield      5.4%
• Rental demand   Average 924 visits per unit
• Est. cash flow    $389/mo

Median price in Preston
The median sales price for 1 bedroom units in Preston, VIC in the last year was $335,000 based on 36 home sales. Compared to the same period five years ago, the median unit sales price for 1 bedroom units increased 5.7% which equates to a compound annual growth rate of 1.1%.
Market demand in Preston data suggests there is average demand from people looking to rent 1 bedroom units in Preston, VIC.

Rental yield in Preston
The rental yield for 1 bedroom units in Preston, VIC was 5.4% based on 319 property rentals and 36 property sales over the preceding 12 months.

Rob D'Agostino