The Victorian state Government is to cut stamp duty for first home buyers as part of their housing affordability strategy.
How will this policy affect:
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1. housing supply and demand in the market. (Use supply and Demand Graph to explain answers).
2. Who are the likely beneficiaries of this policy (First home buyers, existing home owners with investment properties)? Use graph where possible to explain.
3. Will this policy improve housing affordability or drive down property values?