First home buyers in regional Victoria are now closer to owning their own house, after the Victorian Government doubled the First Home Owner Grant to $20,000 for newly built homes in regional Victoria.
The increased grant is part of the government’s housing affordability package, which also includes changes to stamp duty across the State.
The First Home Owner Grant has been doubled to $20,000 in regional Victoria for first home buyers that are building or purchasing new homes, or house and land packages, valued up to $750,000.
The grant will apply to contracts entered into from 1 July 2017 to 30 June 2020, regardless of settlement date.
First home buyers across Victoria will also reap the benefits of changes to stamp duty for purchases of new and established homes, with stamp duty abolished on properties valued up to $600,000, and decreased on properties up to $750,000.
The package, which equates to a $50 million investment over three years, is expected to boost construction and development in regional areas and help up to 6,000 Victorians buy their first home.
The change is part of a broader plan to deliver regional areas the same growth and opportunities seen in Melbourne in recent years.
According to CoreLogic, Victoria’s regional housing market continues to grow, lifting by 4.3% over the year. This is slightly below the combined Australian regional house price growth of 6.1%. With a median house price of $335,000, regional Victoria represents great value for first home owners.
Victorian Premier Daniel Andrews said the first home buyers package together with a significant investment in regional infrastructure was designed to give young people more reasons to live in regional Victoria.
“Importantly, we’re not making these changes in isolation,” Andrews said.
“As our regional communities grow, we’re also investing in public transport, local roads, and the schools and hospitals they need.”
In further efforts to tackle housing affordability across the state, the government also introduced a tax on vacant properties; the vacant residential property tax (VRPT) will be introduced from 1 January 2018.
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