First home buyer grant doubled to $20,000 for buyers in regional Victoria

First home buyer grant doubled to $20,000 for buyers in regional Victoria
First home buyer grant doubled to $20,000 for buyers in regional Victoria

The Andrews government will double the first home owner grant to $20,000 from July 1 for buyers in regional Victoria, as it tries to battle the affordability crisis.

The FHB grant was $10,000 since July 2013. 

The government said the move would help about 6,000 first-home buyers. The grant is only for new homes, not established properties.

Treasurer Tim Pallas was cited by media reports as saying doubling of the grant would increase the appeal of living outside of Melbourne for young families.

Last month, the Andrews government said it was investing $16.4 million to accelerate planning and approval processes to ensure the supply of new housing in Victoria more than meets the annual demand.

Pallas had said that Victoria was taking the lead on improving housing affordability and would extend its Streamlining for Growth Program for three more years to reduce red tape and encourage housing development in key areas.

The state government also offers first-home buyers a 50% duty concession when they buy a new or established home for properties below $600,000 and where the settlement date is on or after July 1, 2011, according to the state revenue office.

But media reports cited the Opposition criticising the move because it is only going to push up property prices and not increase affordability.

"Property developers across regional Victoria will be rubbing their hands together. This is a terrific outcome for them," Shadow Treasurer Michael O'Brien said.

"Unfortunately it's not going to make property more affordable for first-home buyers because prices will simply increase."

Tags: 
Victoria First Home Buyer

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