There’s great news for first home buyers in Regional Victoria, as from 1 July 2017, the First Home Owner Grant will double
from $10,000 to $20,000
in an attempt to help beat the housing affordability crisis.
According to the Victorian government, this will help approximately 6,000 first home buyers, particularly younger people and Gen Y in regional Victoria to build and live in their own community, whilst help to boost local construction jobs and further developments. It will also promote decentralisation by moving young people out of the already congested capital city into growing regional cities such as Ballarat.
Regional infrastructure to improve
With a focus on new housing in regional Victoria, the Labor Government is also working hard to make sure the infrastructure in regional areas is more reliable with frequent public transport, safer roads, better schools and hospitals as well as creating more jobs locally for the new and existing population.
Premier Daniel Andrews states that, “This is a win for first home buyers in regional Victoria, and it’s a win for local jobs too.”
“By doubling this grant, we’re giving young people in regional Victoria even more reason to live locally.”
First Home Owner Grant Conditions
The First Home Owner Grant currently stands at $10,000 and has been so since July 2013. However, only buyers of new property such as off the plan can receive the grant, and not buyers of established property. The property must be valued up to $750,000 and will apply for contracts signed from 1 July 2017 to 30 June 2020.
First home buyers of new homes bought in metropolitan Melbourne will continue to receive the $10,000 First Home Owner Grant.
The new First Home Owner’s Grant is also expected to help boost the number of people taking up the grant in the first place, which has fallen to its lowest levels in over a decade during 2014-15. Approximately 10,000 First Home Owner Grants were issued during 2014-15, down from a peak of 45,000 in 2009-2010.
First Home Owner Grant Could Push Property Prices Up
According to the latest statistics from CoreLogic for February 2017, the median dwelling price in Melbourne stands at $610,000. However, Housing Industry Association acting regional director Keith Banks suggests that an increase to the First Home Owner’s Grant could potentially increase property prices instead.
“We’ve seen this in the past with First Home Owner Grants…where the unintended consequences, it can actually push the price of housing up because developers, and those who have existing houses, will actually see it as an opportunity for the price to increase.”
However, for those struggling to get on the property ladder, a $20,000 grant is extremely attractive and can offer a new way in to this market.
$20,000 First Home Owner Grant in QLD
It's not just Victoria trying to tackle its housing affordability issue and get more people buying property. Queensland has already increased its grant last year. The First Home Owner’s Grant in Queensland was boosted from $15,000 to $20,000, in an attempt to get more first home buyers on the property ladder, but eligible first home buyers only have until 30 June 2017 to make the most of this grant, before it is capped back at $15,000.
First home buyers in Victoria will have until 30 June 2020 to take advantage of this new grant.
Eligibility requirements for the First Home Owner Grant
There are of course eligibility requirements that first home buyers need to match. In order to be eligible for the First Home Owner Grant in Victoria, applicants must be:
At least 18 years at settlement or completion of construction;
An Australian citizen or permanent resident;
You (or at least once applicant) must intend to live in the home as your Permanent Place of Residence (PPR) for at least 12 months;
Purchase a new home (house, townhouse, apartment, unit or similar), that must be valued at $750,000 or less.
You are not
eligible for the FHOG if you or your spouse/partner have already:
Receive the FHOG in Australia;
Owned a home in Australia, either jointly or separately, prior to 1 July 2000;
Lived in a home in Australia in which either of you owned or part-owned on or after 1 July 2000, for a continuous period of at least six months.
To receive the new $20,000 First Home Owner Grant
, you will also have to purchase the property within regional Victoria. More information will be provided as to what suburbs is classed as ‘regional Victoria’, when it becomes available.
Get in Touch
If the new First Home Owner Grant of $20,000
appeals to you then we have a number of suitable properties within regional Victoria that might be of interest. To find out more about what new properties meet this criteria and your budget requirements, we recommend that you speak with one of our iBuyNew Property Consultants who can assist you further with your search.
Call us today on 1300 123 463
to find out more and get the search started.
For even more savings, be sure to read about the recent Stamp Duty exemptions for first home buyers
just announced by the VIC government which come into effect 1 July 2017.