The Victorian Government has announced the First Home Owner Grant will be doubled in regional Victoria. The Grant will increase from $10,000 to $20,000, commencing 1 July 2017. The Government expects up to 6,000 first home buyers will receive extra assistance.
This is in addition to the recent land release announcement.
The increased grant will be available to first home buyers building new homes valued up to $750,000, and is an additional $50 million investment in regional Victoria over the next three years.
The grant will be applicable to contracts signed from 1 July 2017 to 30 June 2020, at which time, the Government will review the benefits for first home buyers and businesses in regional Victoria.
However, our analysis of such grants, not only here but overseas is that they simply lifts prices by the same amount. It is a zero sum game.
Whilst we understand the political agenda, this move is unlikely to improve housing affordability and access to property.