First Home Owner Grant, Bonus and Boost Update

The government has made more changes to the Grant, Bonus and Boost available to first home buyers.  A snapshot of these updates is:

First Home Owner Grant

The First Home Owner Grant provides eligible first home buyers with a $7000 grant. This grant is not means-tested nor is it restricted by the price of the property.
The Grant is an on-going scheme.

First Home Bonus

1 July 2009 to 30 June 2010 (contract date)

If you are eligible to receive the Grant, you may also be entitled to receive an additional payment of $2,000 (for established homes) or $11,000 (for new homes only), known as the First Home Bonus (the Bonus).

To be eligible to receive the Bonus, the purchase price of the property must not exceed $600,000.

1 January 2007 to 30 June 2009 (contract date)

If you are eligible to receive the Grant, you may also be entitled to receive an additional payment of $3,000 (for established homes) or $5,000 (for new homes only), known as the First Home Bonus (the Bonus).

To be eligible to receive the Bonus, the purchase price of the property must not exceed $500,000.

Regional Bonus

1 July 2009 to 30 June 2010 (contract Date)

For contracts entered into for the purchase or construction of a new home in a regional municipality in Victoria, an additional $4500 regional bonus is also available (in addition to the $11,000 bonus).

6 May 2008 to 30 June 2009 (contract date)

For contracts entered into for the purchase or construction of a new home in a regional municipality in Victoria, an additional $3000 regional bonus is also available (in addition to the $5000 bonus).

First Home Owner Boost

The First Home Owner Boost, which was launched by the Australian Government, supplements the Victorian Government funded First Home Owner Grant of $7000. The Boost provides:

14 October 2008 to 30 September 2009 (contract date)

• an extra $7000 to first home buyers who purchase an established home; and
• an extra $14,000 to first home buyers who build a new home or purchase a newly constructed home.

1 October 2009 to 31 December 2009 (contract date)

• an extra $3500 to first home buyers who purchase an established home; and
• an extra $7000 to first home buyers who build a new home or purchase a newly constructed home.

Stamp Duty Concessions & Exemptions

You may already be aware that the recent State Budget made changes to the Duty payable on property in Victoria.

The general duty rate scale (and for pensioners and persons buying a principal place of residence) has decreased by approximately 10% and the new thresholds are:

Dutiable Value	Rate of Duty
Not more than $25,000.00	1.4% of the Value
More than $25,000.00 but not more than $130,000.00	$350.00 + 2.4% of that part of the Value that exceeds $25,000.00
More than $130,000.00 but not more than $960,0000.00	$2,870.00 + 6% of that part of the Value that exceeds $130,000.00
More than $960,000.00	5.5% of the Value

Principal Place of Residence

For Contracts entered into on or after 6 May 2008, home buyers paying $550,000.00 or less will benefit significantly from these savings. The new thresholds are:

Dutiable Value	Rate of Duty
More than $130,000.00 but not more than $440,000.00	$2,870.00 + 5% of that part of the Value that exceeds $130,000.00
More than $440,000.00 but not more than $550,000.00	$18,370.00 + 6% of that part of the Value that exceeds $440,000.00

Pensioners

For Contracts entered into on or after 6 May 2008, qualifying pensioners who are buying a home for $330,000.00 or less will benefit from a full exemption from stamp duty and qualifying pensioners who are buying a home for between $330,000.00 and $440,000.00 will benefit from a concession on stamp duty.

First Home Bonus

Prior to 6 May 2008, home buyers who qualified for the First Home Bonus had to choose between the First Home Bonus and the Principal Place of Residence Concession. Generally, the First Home Bonus was worth more.

For Contracts entered into on or after 6 May 2008, home buyers who qualify for the First Home Bonus will qualify for the Principal Place of Residence Concession also.

A further payment of $3,000.00 is now available to home buyers purchasing a “new” home in regional Victoria where the price is not more than $500,000.00. This is in addition to the $7,000.00 FHOG and $5,000.00 FHB.

Remember feel free to call me anytime if you have any questions in relation to these changes or if you require clarification.

New Legislation

Owners Corporation Act 2006
The Owners Corporations Act 2006 came into operation in December 2007 and made a number of changes to the way bodies corporate are managed.

On 7 February 2008 the Parliament of Victoria passed amendments to the Owners Corporations Act 2006. The key changes now:

• allow members to elect a manager to act as chair of a general meeting

• allow owners corporation committees to appoint a manager to act as secretary

• allow owners corporations to charge up to the prescribed fee ($150) for an owners corporation certificate.

Section 32 of the Sale of Land Act 1958 has been amended to provide that a vendor must (where a property is affected by an Owners Corporation) include a Section 151 Owners Corporation Certificate in a Vendor’s Statement to be provided to a purchaser.

July 2008 Update

WOW, its hard to believe another year has passed and with Amitee having turned “1” two months ago… I am still getting used to the idea that I have a (almost) toddler.

updates
By now you would be aware that we have moved from Wattletree Road Armadale to Chandler Street Parkdale. The opportunity came at a perfect time and has allowed me to better balance work and family life and has not impinged on business at all, thanks to all of you!

New Legislation – Owners Corporation Act 2006

The Owners Corporations Act 2006 came into operation in December 2007 and made a number of changes to the way bodies corporate are managed.

On 7 February 2008 the Parliament of Victoria passed amendments to the Owners Corporations Act 2006 . The key changes now:

• allow members to elect a manager to act as chair of a general meeting
• allow owners corporation committees to appoint a manager to act as secretary
• allow owners corporations to charge up to the prescribed fee ($150) for an owners corporation certificate.

Section 32 of the Sale of Land Act 1958 has been amended to provide that a vendor must (where a property is affected by an Owners Corporation) include a Section 151 Owners Corporation Certificate in a Vendor’s Statement to be provided to a purchaser.

Conveyancers Act 2006

FINALLY, the Conveyancers Act 2006 was passed by Parliament. The Act will commence on 1 July 2008 and will regulate people and corporations who provide or offer to provide conveyancing services. The Act will protect consumers by outlining how conveyancers must conduct business.

When the Act comes into operation, it will establish a new system of regulation and licensing for non-lawyer conveyancers in Victoria .

Conveyancers provide services required to transfer ownership of any real estate or property from one person to another.

Under the new Conveyancers Act 2006 a person operating a conveyancing business will be required to:

• be licensed by the Business Licensing Authority
• be properly qualified and experienced
• be covered by a prescribed level of professional indemnity insurance
• disclose all costs and any commissions received to clients
• actively supervise their conveyancing business
• have their trust accounts audited annually
• contribute to the Victorian Property Fund to compensate consumers who lose money because of fraudulent use of moneys held on trust.

Needless to say, I hope to be among the first to apply for a licence.

I intend to provide these updates on a more regular basis in the hope that it adds value to you and your businesses.

Thank you so much for your ongoing support. I look forward to talking to you all soon!