How will the recent Victoria's budget affect property prices
Written on the 27 June 2017 by James CagneyThe First Home Owner Grant (FHOG) has increased from $10,000 to $20,000 for new homes built in regional Victoria (see below) and value up to $750,000. The $20,000 FHOG will apply for contracts signed from 1 July 2017 to 30 June 2020. Eligible first-home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000 FHOG.
To access the regional areas which qualify for the $20,000 FHOG click >>> REGVIC .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 and whether you are eligible for any exemptions or concessions. These information is available >>> FHOG.
Treasurer Tim Pallas claimed May 2017 Victoria budget will deliver more than $8 billion in surpluses over the next four years, with a $1.2 billion surplus this financial year. The Andrews government is spending big on infrastructure, education and law and order.Regional cities that qualify for the $20,000 regional grant and have potential are Bendigo, Ballarat, Bacchus March, Darley in the West. These areas are traveling distance to Melbourne by road and train. Victorian Premier Daniel Andrews said "If we can better regional communities with Melbourne, if we can better connect between regional communities, that's great for families, it's great for employment." The Victorian government is investing $1.45 billion in regional rail services and upgrades. More than $400 million will go towards fixing up the Gippsland line. The government will upgrade the Warrnambool lines and provide funding for the Surf Coast Rail Project.
In the May 2017 budget schools will receive $50.7 million to improve poor results and the government has committed $695 million to an education works program. Cash from this funding will be put aside so land for 11 future schools can be purchased in growing regional areas. Almost 60 schools in regional areas will be upgraded and 49 schools in Melbourne.
This is not financial advice. You should not act solely on the basis of the material contained in this article for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable.
This information was written and compiled by James Cagney. The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Thank you to the resources of Terry Ryder, Property Observer, The ABS, BIS Shrapnel, Michael Matusik, Property Monitors, Colliers, On the House, Corelogic, RP Data, Residex, SQM, Herron Todd White, NAB Residential Property Survey, Australian Bureau of Statistics, Peter Wargent, Port Phillip Publishing, Economy & Markets, Harry S. Dent and the many others for the material discussed above.
Author: James Cagney