The Victorian State Government has announced changes from 1st July 2013 to the First Home Owners Grant. Unfortunately for those first home buyers looking at purchasing an established home, the grant is no longer available in any form from that date. Those first home buyers who enter into a Contract to buy or build a new home from 1st July 2013 will see a rise in the FHOG to $10,000 for homes under $750,000.
All is not lost for those buying established homes, as all eligible first home buyers will qualify for a reduction in stamp duty of 40% for purchases with a settlement date on or after 1st July 2013 for homes valued up to $600,000. This reduction will rise to 50% from 1st September 2014.