Victorian first home buyers jump back into the property market

First home buyers of Victoria jump back in to the property market. According to the Adelaide Bank/Real Estate Institute of Australia Housing Affordability Report, the number of loans to first home buyers jumped 10.1% in the June quarter, before stamp duty concession kicked in.

“In the June quarter, Victoria accounted for around 28 per cent of the total number of first-home buyers who entered the property market in Australia — the highest of any state or territory,” said Gil King, chief executive of Real Estate Institute of Victoria.

However, Mr Gill said that despite the good news, home loans to first time buyers were well down on the same time last year.

“While a 10.1 per cent increase on March figures is a positive sign, loans to first-home buyers remain considerably below June 2016 figures (-10.1 per cent),” he said.

He said that new incentives for first time buyers, which includes the removal of stamp duty for homes that are below $600,000 as well as scaled duty reduction for homes upto $750,000 would help more first-time buyers into the market.

Mr King also said that the report suggested that some first-home buyers of Victoria were keen to purchase before the stamp duty concessions increased competition for homes around the $600,000 barrier.

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