Media Release
The Real Estate Institute of Victoria Ltd
Telephone (03) 9205 6666
ABN 81 004 210 897
Tuesday 9 November 2010
First home buyer numbers drop, stamp duty increases
The number of first home buyer numbers has reduced significantly due to affordability declining in
Victoria as a result of rising property prices, shortage of stock and higher state government taxes.
REIV CEO Enzo Raimondo said that it is incumbent on all political parties contesting the election to
outline how they will address housing affordability in Victoria and assist first home buyers. In four other
Australian states most first home buyers pay no stamp duty; the question is why can’t that happen in
Victoria?
“When the First Home Owners Grant was introduced in 2000 it provided buyers with $7000, an
amount that went a long way to paying the stamp duty on most homes and, in the case of 30 suburbs,
left buyers with extra to go towards the home purchase.
“Ten years later the failure of the state government to control escalating stamp duty bills or increase
the grant means that now the grant is little more than a small subsidy on the stamp duty.
“The state government is giving with one hand, taking more with the other and leaving most first home
buyers out of pocket.
“According to the ABS, 10 years ago first home buyers represented 28 per cent of the market. A year
ago it was 27 per cent and in August this year it had dropped to 17 per cent.
“Ten years ago a first home buyer in Broadmeadows who received the $7000 grant had nearly $5,000
remaining after stamp duty; now they have to pay an extra $6,600. In Box Hill if they purchased a
modest unit they would have had $1,200 left over; now they need to pay another $10,870.
“Stamp duty revenue has more than trebled in 10 years and is adding significant financial burdens at a
time when buyers can least afford it.
“The answer to improving affordability is reducing stamp duty, building more homes and increasing
first home buyer assistance,” Mr Raimondo concluded.
Ten of the 30 suburbs* where recipients of the First Home Owners Grant were left with money
to help pay for their home after paying stamp duty:
Vermont, $240
Richmond (units), $360
Box Hill (units), $1,200
Ferntree Gully, $1,274
Sunshine, $2,640
Bayswater, $2,940
Melton, $3,660
St Albans, $3,840
Footscray West (units), $4,620
Broadmeadows, $4,734
*based on the median price of a home in the September quarter 2000 and stamp duty payable at the time.
MEDIA COMMENT:
Robert Larocca, 9205 6622 or 0409 198 350
NEWS 
