As we step into 2024, Victoria's housing market is gearing up for a year marked by significant changes, bringing both challenges and opportunities for homeowners and prospective buyers. Property experts are urging vigilance as major government-mandated alterations reshape the state's real estate landscape.
Key Changes in 2024:
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Land Tax Adjustments - January 1, 2024:
- Effective January 1, 2024, the Land Tax undergoes modifications impacting investment, commercial, and holiday home properties.
- The threshold for application is lowered to land valued above $50,000, as opposed to the $300,000 minimum in 2023.
- Estimated impact: 860,000 owners, with potential cost increases varying based on land value.
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Absentee Owner Surcharge Increase - January 1, 2024:
- The existing surcharge on offshore owners not residing in Australia doubles from 2% to 4% of a property's dutiable land value.
- Estimated impact: 3916 transactions in the 2022-2023 financial year.
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National Construction Code Amendments - May 1, 2024:
- Homes approved for construction after May 1 must adhere to a seven-star energy efficiency standard under NatHERS.
- New liveability standards, including accessibility for differently-abled Victorians, will be enforced.
- Estimated impact: 50,000 homes per year, with potential costs ranging from $30,000 to $40,000 for a standard new home.
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Help to Buy Co-Buying Scheme - 2024:
- A co-buying scheme supporting Australians earning $90,000 or less individually ($120,000 or less for households).
- Approved buyers with a 2% deposit co-buy with the federal government, covering up to 30% of the home's cost (40% for new builds).
- Estimated impact: 40,000 homebuyers nationally, potentially reducing the home purchase price by up to $340,000.
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Rental Bidding Ban Extension - Expected in 2024:
- Anticipated extension of the ban on soliciting rental bids, with fines for agents and landlords accepting unsolicited bids.
- Estimated impact: 624,000+ private rentals across Victoria.
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Short-Stay Accommodation Levy - January 1, 2025:
- A 7.5% levy on income from homes listed for short-stay accommodation rentals, effective January 1, 2025.
- Estimated impact: 36,000 properties, with potential cost implications.
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Vacant Residential Land Tax - January 1, 2025:
- A 1% land tax addition on the capital improved value of vacant residential land, applicable in inner and middle-ring Melbourne suburbs.
- In 2025, it expands to all homes around Victoria, with exemptions for owner-occupied or rented properties.
- Estimated impact: 700 homes, with potential cost increases based on capital improved value.
As the real estate landscape undergoes these transformative changes in 2024, staying informed and adapting strategies will be crucial for homeowners and buyers alike. The dynamic nature of these modifications presents an opportunity for those ready to navigate the evolving market with resilience and foresight.