All first home buyers to benefit
The Victorian Government has changed the way in which they will be assisting first home buyers so that more people benefit.
The First Home Buyers Grant of $7,000 remains available for all those buying their first home for $750,000 or less. The grant is paid by the State Government and has no scheduled end date.
First home buyers also benefit from a 20 per cent reduction on their stamp duty bill. That means that on the purchase of a $400,000 home they will save $3,274 and on a $550,000 home they will save $4,994. The stamp duty reduction is not available for homes priced over $600,000.
The good news is that on 1 January the cut to stamp duty will increase from 20 per cent to 30 per cent. That means that on the purchase of a $400,000 home they will save $4,911 and on a $550,000 home they will save $9,321.
The stamp duty cut will then increase to 40 per cent on 1 January 2014 and then to 50 per cent on 1 September 2014.
From the 1st of July the First Home Buyers Bonus will no longer be available. The Bonus was only for first home buyers of a new home and was introduced a few years ago to stimulate the building of new homes during the GFC. It has done its job and now the government’s preference is to help all first home buyers. Those buying a new home off the plan will still benefit from concessions to stamp duty.
Auction market improves
Melbourne’s auction market has shown signs of improving following the latest interest rate cut.
The Real Estate Institute of Victoria said the clearance rate was 63 per cent for the 568 results reported today. The outcome of another 75 scheduled sales are still unknown.
It’s the second time the sales level has risen above 60 per cent since the Reserve Bank’s double-strength interest rate cut. A fortnight ago, the clearance rate was 57 per cent.
‘‘This weekend last year marked a turning point in the auction market, with the clearance rate falling to the mid-to-low 50s throughout winter and into the spring,’’ REIV spokesman Robert Larocca said.‘‘At this point, that outcome looks unlikely of being repeated this year, which is positive news for vendors.’’
What’s on in Melbourne? – Victorian Fair Trade Festival 2012
The Victorian Fair Trade Festival is a platform for fair trade businesses to showcase their products and services; it will provide opportunities for the thousands of people attending to sample fair trade product, experience what fair trade is all about, interact with the stall holders and learn about the benefits how every choice matters.
Moral Fairground has organized five exciting events, taking place from Friday 11th — Friday 18th May, 2012.
‘The Victorian Fair Trade Festival 2012 will definitely be an event to remember, there will be markets, seminars, live music, art exhibition, delicious food, and activities for the kids,” says Festival Director, Susanna Bevilacqua.
The City of Melbourne is proud to support the Victorian Fair Trade Festival in 2012.
“The City is taking a proactive approach to social, economic and environmental sustainability with initiatives such as our 1200 Buildings retrofit program and Zero Net Emissions by 2020 strategy. Our support of local fair trade initiatives and festivals is a continuation of this strategy and one that we encourage Melbournians and visitors to the city to take part in,” says Councillor, Cathy Oke, Future Melbourne (Eco-City) Committee Chair.
Look familiar? – The TV home of Nina Proudman in Network 10′s award-winning ‘Offspring’ series has behind-the-scenes been getting better & better!
Nina’s alter ego Asher Keddie wins another Logie, the show continues its popular run and now Nina’s warehouse apartment that helped win our hearts is back in the limelight and on the market.
A painterly streetscape with church spires and ever-changing sunsets hangs behind the brilliant designer interior of this stunning top floor warehouse conversion showcasing stylish, state-of-the-art features in a sophisticated contemporary milieu. Interactive, interchangeable and utterly inspirational spaces set this vast inner-city home apart in a coveted complex undergoing a massive upgrade moments to Sydney Road cafés, shopping, transport and Royal Park.
The perfect sanctuary for Nina Proudman providing food for the soul, this remarkable property is for anyone searching for love, fulfillment and balance with lashings of real-life style and sophistication.
309/1-3 Dods Street, Brunswick
Auction: Saturday 2/06/2012 at 10:30am
Contact: Belinda Lindsay 0409 853 769, Angela Coates 0417 439 090
Benefits flow for East Melbourne sites
Two major water projects – to recycle 250 million litres of water a year and cost almost $40 million – are underway in East Melbourne.
A $24 million water recycling plant next to the MCG will treat 180 million litres of sewerage a year to reuse for toilet flushing and cleaning in the MCG and irrigation in Yarra Park.
The Melbourne Cricket Club is splashing $18 million on the project – which is expected to be complete in June – while the State Government will provide the remaining $6 million.
MCC environment and turf development manager Tony Ware said the facility supported the long-term health and viability of Yarra Park.
“It will also substantially reduce our reliability on potable water and increase the amenity for all park users,” Mr Ware said.
State Budget focus on economic growth will help property market
The REIV has welcomed the priority placed on ensuring economic growth in the Victorian Budget and the provision of ongoing funding for stamp duty cuts for first home buyers.
REIV CEO Enzo Raimondo said that a healthy property market was reliant on a healthy economy and the difficult decisions in this Budget will help ensure the economy has the best opportunity for growth.
“The Treasurer is committing to a 1.5 per cent improvement in the Gross State Product (GSP) this financial year and 1.75 per cent the next. In light of the very difficult broader economic conditions, it is pleasing that action was taken to ensure the Victorian economy is primed for growth.
“The provision of $65M to fund the increase of stamp duty cuts for first home buyers from 20 to 30 per cent on 1 January 2013 is welcome, given the severe economic constraints the government faced in this Budget.
“The REIV called for the government to refocus assistance for all first home buyers and we welcome that change.
“Under the government’s policy, all people buying their first home for less than $600,000 will benefit from stamp duty cuts.
“Cuts to WorkCover are a sensible and focused policy to help business.
“The REIV welcomes the three per cent cut in WorkCover premiums. When teamed with other commitments to reduce red tape, this will lower business costs in difficult times.
“There is more that can be done to help the economy and the REIV encourages the Treasurer to announce a program of reform of state property and business taxes as recommended by the Victorian Competition and Efficiency Commission report “Securing Victoria’s Future Prosperity: A Reform Agenda,” Mr Raimondo concluded.
Victoria’s new home bonus grant ends June 30, but lower stamp dutycuts in January 2013 for first-time buyers
Victoria has scrapped its first-home buyer bonus for new homes in favour of a broader market stimulus through first-home buyer stamp duty cuts.
But only some within the property industry have welcomed the Victoria government’s stamp duty cuts for first-home buyers.
State Treasurer Kim Wells says all first-time buyers spending less than $600,000 will benefit from the new policy.
Although the axing of the popular first-home buyer bonus is expected to impact on new home sales, Wells was adamant the best way to help first-home owners was to give them all a stamp duty discount.
A 20% discount had previously been introduced, with another 10% discount to follow from January 1, building eventually to 50%.
The separate federal government first-home owner grant of $7,000 for homes under the value of $750,000 will continue.
But the first-home buyer bonus of $13,000 for newly constructed homes will expire in June.
“The provision of $65 million to fund the increase of stamp duty cuts for first-home buyers is welcome, given the severe economic constraints in this budget," the Real Estate Institute of Victoria’s Enzo Raimondo says.
RBA: At its meeting today, the Board decided to lower the cash rate by 50 basis points to 3.75 per cent, effective 2 May 2012.
This decision is based on information received over the past few months that suggests that economic conditions have been somewhat weaker than expected, while inflation has moderated.
Growth in the world economy slowed in the second half of 2011, and is likely to continue at a below-trend pace this year. A deep downturn is not occurring at this stage, however, and in fact some forecasters have recently revised upwards their global growth outlook. Growth in China has moderated, as was intended, and is likely to remain at a more measured and sustainable pace in the future. Conditions in other parts of Asia softened in 2011, partly due to natural disasters, but have recently shown some tentative signs of improving. Among the major countries, conditions in Europe remain very difficult, while the United States continues to grow at a moderate pace. Commodity prices have been little changed, at levels below recent peaks but which are nonetheless still quite high. Australia’s terms of trade similarly peaked about six months ago, though they too remain high.
Financial market sentiment has generally improved this year, and capital markets are supplying funding to corporations and well-rated banks. At the margin, wholesale funding costs have declined over recent months, though they remain higher, relative to benchmark rates, than in mid 2011. Market sentiment remains skittish, however, and the tasks of putting European banks and sovereigns onto a sound footing for the longer term, and of improving Europe’s growth prospects, remain large. Hence Europe will remain a potential source of adverse shocks for some time yet.