VIC First Home Owner Grant to Double for Regional Victoria

Discussion in 'Where to Buy' started by KateAshmor, 2nd Mar, 2017.

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  1. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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    The First Home Owner Grant will double to $20,000 for regional Victorian properties (new builds only) from 1 July.
     
  2. Dave3214

    Dave3214 Well-Known Member

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    It was the huge grant in the 2009-2010 era that enabled me to buy my place, it was a godsend for me, as someone who had not been particularly smart with my money to that stage of my life.

    $20K as a regional grant may mean that a New Norlane 2-bedder on the half size block could be had for a loan of around $220K if that recipient of the grant has say $5-$10K already, as a 10% deposit. Won't really help too many who already own places of course, but it may perhaps sway some first home-buyers who might be tossing up between spending $400K+ in an outer suburb of Melbourne versus a significantly lower amount in Geelong's Northern suburbs in particular.

    With Melbourne starting to groan under the strain of ever-increasing population, i do reckon this impetus aimed at regional areas is a good call. Not a huge fan of Daniel Andrews, but his deal to guarantee Avalon Airport and now this certainly has been a very good thing for Geelong, not to mention the NDIS and Workcover head offices moving to Geelong. That impressive tower being built on the corner of Malop and Gheringhap St, that will be a sign that Geelong's starting to progress.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Housing affordability is in crisis for a number of reasons in Victoria - in Melbourne. Plenty of affordable property outside of Melbourne, this simply is trying to get people to purchase property outside of Melbourne.

    A good start, but there really needs to be encouragement to business to provide jobs outside of Melbourne as well.
     
  4. JL1

    JL1 Well-Known Member

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    As always thanks @KateAshmor for sharing the articles you come across.

    Does anyone have a reference map of where regional the boundaries are?

    I'm in two minds about targeting regions for affordability regimes. It supresses house price growth by increasing supply above natural demand levels, so it will further drive the price divide between the city and regions.

    The other side of FHOG initiatives is that they stimulate construction jobs. I'm not a fan of governments using construction for the sake of jobs growth when construction isn't needed. It's a surge demand that will go away after a year or two (usually long enough to keep the government in power looking like they did something meaningful for employment). It slows local housing price increases which further exacerbates the divide between city and regional prices, and finally it is purely funded by consumer debt.

    So i think the pessimist in me outweighs the optimist on this one, as it skirts the issue that Melbourne is what's unaffordable, not Victoria. If the motive is more about jobs, then i think this is a total bandaid solution.