First Homebuyer Concession Scheme: Over 9,200 Fewer Applications for Government Packages Than During Covid-19 Pandemic

Hoppers Crossing was the most popular suburb for first-time homebuyers using the scheme, with homes like 2 Bisset Court selling starting at $720,000.

Despite more than $1 billion in assistance, an unprecedented plunge in utilization of Victoria’s primary assistance program for first-time homebuyers has prompted calls for banks to step up.

New data from the Victorian Revenue Service reveals that there were 44,681 applicants for the state’s first homebuyer stamp duty exemption and concession scheme in the last financial year.

Melbourne had 53,980 as it endured multiple lockdowns in the past 12 months. The $9,299 drop is his first in six years and the biggest since the plan began a decade ago.

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Craigieburn homes are more affordable, like 57 Evergreen Cres, with a price guide of $700,000 to $740,000.

According to the state government, the main factor affecting the number of applications was the slowdown in the housing market, which led to lower sales. And despite the drop, they approved more than $1.15 billion to help first-time homebuyers in the past fiscal year.

This includes $801 million in stamp duty waivers and concessions and $223 million worth of first home owner grants (17,848 grants).

“We are helping first-time homebuyers and are providing over $20 million in support each week,” the spokesperson said.

Mortgage brokers, however, warn that the cap on the scheme no longer reflects housing prices in Melbourne.

The stamp duty exemption applies to homes up to $600,000 and the discount applies to homes up to $750,000. Figures have not been adjusted since 2017.

The latest PropTrack figures show Melbourne’s median home price of $948,000 is nearly $200,000 higher than the cap, even though the market has fallen 5% since it peaked in March this year.

State government statistics suggest that the average purchase price under the stamp duty exemption scheme is just $431,200, suggesting that most are now billed in rural Victoria or units in Melbourne, with homes in Melton With a median price of $500,000, it’s the cheapest single-family home in the city.

Most Popular FHB Postal Codes VIC (Stamp Duty Incentive)

Zip Code/Suburb, Application Number (FY21-22)

3029 (Hoppers Crossing, Ternate), 2255

3064 (Craigy Byrne, Mickleham), 2024

3977 (Cranbourne), 1298

3978 (Clyde), 1151

3030 (Point Cook, Werribee), 1110

3810 (Pakenham), 756

3338 (Melton South), 754

3336 (Deanside), 747

3024 (Wyndham Vale), 718

3335 (Bonnie Brook, Rock Bank), 669

Source: Victorian Revenue Service

The average purchase cost for a concession scheme is $669,500.

Mortgage Choice broker David Thurmond said both lower prices and lower borrowing capacity due to higher interest rates are pushing first-time homebuyers to their limits.

“People buying a $600,000 home used to only need $65,000[down payment]but now they need $85,000 to $95,000, which is especially detrimental for single applicants,” Thurmond said. said.

Market entrants will receive the state government’s first homeowner grant, a $10,000 grant for those who buy their first home in new construction, and Victoria, which has helped nearly 1,000 people since it was launched last October. Also supported by the Morning Home Buyers Fund.

But Thurmond said lenders could do more by introducing a 40-year loan term for first timers to reduce monthly repayment costs even as interest rates rise. .

Kate Bacos, president of the Australian Association of Real Estate Buyers and Agents, said the key to getting first-time homebuyers back into the game is helping them overcome their fears.

“I think[first-time homebuyers]are all intimidated because of the talk of rising interest rates,” Bakos said.

In Werribee, 2 Koombahla Court is on the market with an asking price of $700,000.

Even though typical home prices are 5% cheaper than they were in March, first-time homebuyers are still dreading the purchase, “joking” that they’ll be the first to buy a home like their parents. ing.

“For $600,000, you can live in a house in a convenient and accessible place, but if you want a house, you have to go to the surrounding area,” said Bakos.

With home prices and borrowing capacity pushing new homeowners further away, SRO data shows that the most popular first-home buyer suburbs for those using the scheme are more than 20km away from the CBD. was shown.

In the West, first homebuyers were primarily attracted to areas such as Hoppers Crossing, but northern suburbs such as Craigieburn and southeastern areas such as Cranbourne were also popular.

Clyde was also popular with market entrants. 1 Pamplona Way is available from $650,000 to $695,000.

Barry Plant executive director Mike McCarthy added that first-home buyer demand for his offices in areas such as Pakenham, South Morang and Taylors Lakes remains strong.

“I think there’s going to be a little adjustment period,” McCarthy said.

“There is a bit of a lag after the initial interest rate shock and we are waiting a bit to see what happens in the market where the median is still rising in many suburbs.”

Mr McCarthy added that he believes the cap on the stamp tax regime is “broadly in the right range”.

“This also includes the apartment market, so ($600,000) generally gives you something reasonable,” he said.

“Another argument is that if (caps) have to be adjusted to relieve pressure on the demand side, prices will rise.”

Most Popular FHB Zip Codes VIC (Grants to First Homeowners)

Zip Code/Suburb, Application Number (FY21-22)

3029 (Hoppers Crossing, Ternate), 1470

3064 (Craigie Byrne, Mickleham), 1237

3978 (Clyde), 939

3336 (Deanside), 845

3335 (Rock Bank), 687

3217 (Armstrong Creek, Mount Dunyd), 605

3338 (Melton South), 568

3977 (Cranbourne), 519

3024 (Wyndham Vale), 497

3030 (Delimat, Point Cook, Werribee), 445

Source: Victorian Revenue Service

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First Homebuyer Concession Scheme: Over 9,200 Fewer Applications for Government Packages Than During Covid-19 Pandemic

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