First Home Owner Grant extended for 12 months

THE Andrews Government is extending the $20,000 First Home Owner Grant for people buying or building a new home for an extra 12 months, in another measure to support Victorians through the coronavirus pandemic.
The extension is intended to give more Victorians the opportunity to live locally, take advantage of falling prices and enter the market for the first time.
Last week, Treasurer Tim Pallas announced the regional grant – which had been due to end in June – would be extended to the middle of 2021.
The change was included in legislation that Labor passed in the emergency sitting of Parliament last week.
In July 2017, Labor doubled the regional First Home Owner Grant from $10,000 to $20,000. Since then, more than 8,800 regional First Home Owner Grants have been provided, saving Victorian families $176 million.
That includes more than 276 grants for the Surf Coast, worth almost $5.5 million in savings.
The grants have also been popular in the Armstrong Creek growth corridor.
Warralily general manager Mark Whinfield welcomed the extension of the regional grant, which he said strengthened Greater Geelong’s position as a very attractive market for first home buyers.
“When the grant was introduced in 2017, Warralily saw a significant growth in sales of more than 30 per cent that was driven by first home buyers.
“In times like this, buyers are making prudent decisions and recognise the substantial benefit of buying land in Geelong to build their dream home on, including the regional grant and stamp duty exemptions.
“The Geelong region is increasingly recognised as a great lifestyle choice, which is enhanced by the value for money advantage over suburban Melbourne.”
Modelling by the Department of Treasury and Finance predicts property prices may fall by up to 9 per cent by the end of 2020, with the severity of the downturn dependent on how long restrictions are required to remain in place.
To be eligible for the grant, the purchaser or purchasers must be first home buyers in one of 48 local government areas buying or building a property valued at $750,000 or less and it must be used as the principal place of residence for 12 continuous months following settlement.
“With property prices slowing due to coronavirus, this is a great time for people who are ready to buy,” South Barwon Labor MP Darren Cheeseman said.
“The doubling of the grant – now the extension – is just another way we’re supporting families get into the market.”