Tax cuts, new home guarantee schemes: How Victorian homebuyers will be better off from July 1

Tax cuts, new home guarantee schemes: How Victorian homebuyers will be better off from July 1
Tax cuts, new home guarantee schemes: How Victorian homebuyers will be better off from July 1

4 Mangarra Rd, Canterbury, was the second most expensive auction in Melbourne this week, fetching $4.2 million.

Victorians struggling to buy a home will get a big boost this week as tax cuts add tens of thousands of dollars to budgets and a new tranche of government housing support kicks in.

But they have fewer homes to choose from as the school holidays lead to a quiet start to the new financial year, with just 758 auctions planned according to PropTrack.

This week Victoria had 937 homes scheduled to go under the hammer, with PropTrack recording a 62.5 per cent clearance rate compared to yesterday’s 645 results.

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Statistics from Ray White show that a significant portion of sales are likely to come from landlords, with the state’s largest real estate group reporting that 31.4 percent of sales in the past 90 days came from investors.

In contrast, the number of buyers among investors was only 16.7 percent.

Chief auctioneer Jeremy Tyrrell said the result was that many of the more affordable homes were sold to first home buyers, who should be buoyed by the windfalls of the new financial year.

9 Rosella Rd, Parkdale, became the third most expensive home to sell this week at $3.01 million.

From Monday, tax cuts will give Victorian homebuyers earning $96,000 a $20,000 boost to their budgets as banks factor this into their borrowing capacity and purchasing power.

Canstar’s calculations also show that for couples earning the same, it could mean a boost of $40,000.

Meanwhile, July 1 marks the launch date for the federal government’s next 50,000 Home Guarantee positions, in which the federal government guarantees home mortgages for market entrants and struggling single parents. It shortens the time it takes to save up a down payment, with applicants needing just 5 percent of their planned purchase price to make a move — and helps them avoid thousands of dollars in mortgage insurance from lenders.

7 Charles St, Hawthorn, was the highest auction sale of the week at $7 million.

The scheme includes 35,000 first home buyer guarantees for metropolitan areas across the country, 10,000 places for regional areas and 5,000 dedicated places for single parents.

Mr Tyrrell said he thought the combination would likely offset “ongoing speculation about what they are going to do with interest rates”.

Melbourne’s top sales for the weekend were a $7 million post-auction result for 7 Charles St, Hawthorn, a $4.2 million auction sale for 4 Mangarra Rd, Canterbury, and a striking Parkdale home at 9 Rosella Rd that fetched $3.01 million.

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