Victorian Government Boosts Property Grants Ahead of November Election

HIA statement:

The Housing Industry Association has welcomed the State Government’s budget boost for Victorian first home buyers purchasing new homes, but believes more needs to be done to improve land supply and housing affordability.

From July 1, Victorian first home buyers will get $20,000 for a newly built home in metropolitan Melbourne and $26,500 for a newly built home in regional Victoria (see table below for breakdown of grant).

“HIA had called for an extension of the state-based boost for first home buyers and suggested that it be limited to newly built homes to avoid pushing up house prices,” HIA Victorian Executive Director Gil King said.

“The extension will help maintain jobs in our industry and provide a much needed boost to housing supply by helping more first home buyers build their dream home,” Mr King said.

But as our population continues to grow, well-located, affordable land remains the key issue. In its pre-budget submission HIA had called for an extension of the Urban Growth Boundary (without linking it to a new tax) and for greater infill development.

“Victoria’s population is expected to reach 8.5 million by 2056, with roughly 6.8 million people living in Melbourne. There is clearly a need for affordable housing in Melbourne’s middle and inner suburbs. The Government needs to dedicate greater resources to tackling the difficult issues that are restricting infill development. It is not enough to set aside $8.3 million over four years for Central Activity Districts.”

HIA had also called for the Government to reduce stamp duty and other taxes on property that increase the cost of housing.

“Home buyers pay more stamp duty in Victoria than any other state,” Mr King said. “These taxes make up an unfair and disproportionate level of state revenue. The Government needs to stop the multiple charging of stamp duty.”

From July 1, 2010, Victorian first home buyers can access:

New Homes in Metropolitan Melbourne:
Federal grant: $7000
State grant: $13,000
Total grant: $20,000

New Homes in Regional Victoria:
Federal grant: $7,000
State grant: $13,000, plus $6,500 regional boost
Total grant: $26,500

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco

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