Home loans in Victoria
Victoria is the most densely populated state in Australia and is always a popular choice for job seekers and those relocating to improve their standard of living.
The state is full of national and multinational industries with many financial and property services, wholesale, retail, hospitality and manufacturing businesses choosing to operate out of the state.
The capital, Melbourne, is the hub for Victoria’s business operations with the area experiencing a high level of property demand. This has affected property prices with strong growth figures a feature of the Victorian market. Home loans and individual properties are, therefore, very competitive.
What is the Victorian economy and property market like?
Due to large levels of available jobs and high standard of living, Victoria is a popular state for people to settle both from overseas and interstate locations. The industries that fuel the state’s economy are mainly in the service sectors and tourism. Most people are employed by these industries.
The state’s high population density has contributed to a shortage in detached properties and land. There are a large proportion of apartments in the state with investors and developers meeting the demand for housing by building more apartment and townhouse blocks. This need for housing, however, is less than Victoria’s closest comparison state, New South Wales.
What are the positives and negatives of getting a home loan in Victoria?
The booming economy in the state will ensure properties in Victoria will always be sought after and in demand. This level of interest increases the closer you get to the Melbourne CBD.
Property prices can vary from suburb to suburb and should be researched to ensure you are getting the best deal. Victoria, especially its regional areas, can be susceptible to natural events - most commonly bushfires - and this should be taken into account when buying a property. This would be relevant for houses close to vegetation or in areas that have suffered from fires in the past. This will affect the price of the property as well as future home insurance premiums.
What fees and charges will I have to pay when getting a home loan and Victoria?
The Victorian state government as well as council regions will charge you fees and levies when purchasing a property, and following the sale. The main tax is the Land Transfer Duty that is charged for the cost of transferring the property from one individual to another. This is charged based on the value of your property. In some cases you may have to pay a Land Tax if the property is an investment or business premises.
Does the Victoria state government offer any incentives for getting a home loan in the state?
The Victorian government offers several grants and discounts to people wanting to get a home loan in the state who have special circumstances. These generally revolve around first home buyers who can apply for a First Home Owner Grant, a first home buyer duty reduction and a principal place of residence duty concession. These come with special requirements and should be researched before applying.
Other groups, such as, young farmers can also apply for duty discounts or exemptions.