Victoria's new home bonus grant ends June 30, but lower stamp duty cuts in January 2013 for first-time buyers
Victoria has scrapped its first-home buyer bonus for new homes in favour of a broader market stimulus through first-home buyer stamp duty cuts.
But only some within the property industry have welcomed the Victoria government’s stamp duty cuts for first-home buyers.
State Treasurer Kim Wells says all first-time buyers spending less than $600,000 will benefit from the new policy.
Although the axing of the popular first-home buyer bonus is expected to impact on new home sales, Wells was adamant the best way to help first-home owners was to give them all a stamp duty discount.
A 20% discount had previously been introduced, with another 10% discount to follow from January 1, building eventually to 50%.
The separate government first-home owner grant of $7,000 for homes under the value of $750,000 will continue.
The grant is not a federal grant as state governments fund it as part of the intergovernmental agreement on finances.
But the state government first-home buyer bonus of $13,000 for newly constructed homes will expire in June.
“The provision of $65 million to fund the increase of stamp duty cuts for first-home buyers is welcome, given the severe economic constraints in this budget," the Real Estate Institute of Victoria's Enzo Raimondo says.
“The REIV called for the government to refocus assistance for all first-home buyers, and we welcome that change," he says.
The REIV says the bonus for newly constructed homes has done its job, with refocused assistance for all first home buyers a good move.
The bonus for new homes was worth $13,000 for a city dwelling and $19,500 for a country property.
But Housing Industry Association Victorian director Gil King says not extending the bonus beyond June was ''short-sighted'', especially following the significant slowdown in new home sales across Victoria.
''The state government is running the risk of undoing all the inroads we have made over the last few years in alleviating Victoria's housing shortage,'' King says.
Photorgaph by Richard Roche courtesy of Flickr.
