A Legal Guide for First Home Buyers in Victoria

Buying or building your first home is a major life milestone—and for many, a lifelong dream. But alongside the excitement comes a wave of legal formalities, financial planning, and regulatory hurdles that can quickly become overwhelming.

At JHV Lawyers, we regularly work with first-time buyers to ensure their journey is not only exciting but also legally secure and stress-free. This guide outlines the key legal and practical steps involved in purchasing or building your first home in Victoria.

Define Your Homeownership Strategy: Build or Buy?

Before anything else, you need clarity.

Ask yourself:

Do you want to buy an established property?
Or do you prefer to build a new home to your specifications?

Each choice has its pros and cons:

Buying an existing property is generally quicker and involves fewer day-to-day decisions. Ideal for busy professionals or families looking to settle quickly.
Building a new home offers customisation but requires more involvement and time. If you have a vision and want full control over the design and materials, this might be the better option.

Regardless of your choice, legal considerations will be present at every stage—contracts, title checks, permits, and inspections. This is where a legal professional becomes critical.

Understand Your Financial Position: Loan Pre-Approval

One of the most important early steps is to obtain loan pre-approval. This gives you a realistic understanding of what you can afford and helps streamline negotiations.

Key considerations:

Current income and future liabilities
Deposit size
Loan eligibility
Ongoing mortgage repayments

We strongly recommend speaking with a mortgage broker and getting your loan pre-approved before beginning your property search or speaking with builders. This step provides clarity, avoids overcommitment, and helps set clear boundaries when entering legal contracts.

Choosing the Right Location

Location is both a lifestyle and financial decision. From a legal perspective, certain areas may also come with different zoning laws, development restrictions, or environmental overlays.

Key location considerations:

Proximity to work, schools, and transport
Future development plans
Local crime rates
Property value trends
Zoning and planning laws
Community and infrastructure

At JHV Lawyers, we can assist with property due diligence, including council searches and planning checks, to ensure your chosen location aligns with your goals and doesn’t bring unexpected legal complications.

Account for Additional Costs

While purchase price is the main figure buyers focus on, there are numerous additional costs involved in both buying and building:

Legal and conveyancing fees
Building inspections and reports
Stamp duty (more below)
Moving costs
Connection fees for utilities
Furnishing and initial maintenance

Proper budgeting is essential—and our team can guide you through the legal obligations and disclosures surrounding these costs, especially during the contract stage.

First Home owner Grant (FHOG) in Victoria

If you’re a first-time buyer in Victoria, you may be eligible for the First Home owner Grant (FHOG).

Eligibility criteria:

Australian citizen or permanent resident
Over 18 years old
Never owned residential property in Australia
Must live in the home for at least 12 continuous months
Property must be a new home, less than 5 years old
Property must be valued at $750,000 or less

Grant amount: $10,000 (for new homes only)

Our legal team can assist in determining your eligibility, lodging the application, and ensuring that it is factored correctly into your settlement.

Stamp Duty Exemptions and Concessions

First home buyers in Victoria are entitled to stamp duty exemptions or concessions, depending on the property value:

No stamp duty for properties valued up to $600,000
Concessions available for properties between $600,001 and $750,000

Stamp duty is a significant cost, often amounting to tens of thousands of dollars. At JHV Lawyers, we ensure these savings are properly applied and reflected in your settlement calculations.

Why You Need a Property Lawyer – Not Just a Conveyancer

Many buyers assume a conveyancer is enough—but when legal issues arise, a lawyer becomes essential.

Unlike conveyancers, lawyers can:

Provide legal advice on contracts and risks
Assist in property disputes, easements, or caveats
Handle complex title issues, covenants, and planning overlays
Represent you in case of litigation

At JHV Lawyers, we offer both conveyancing services and legal expertise, ensuring that your property transaction is legally sound from start to finish. Whether it’s reviewing contracts, negotiating terms, or protecting your rights in the event of conflict, we’re with you every step of the way.

Ready to Take the First Step?

Purchasing or building your first home is one of the biggest financial and emotional decisions you’ll ever make. Don’t leave it to chance.

At JHV Lawyers, we specialise in guiding first home buyers through: