REIV: Incentives increase first home buyer activity

THE state government’s introduction of incentives for first homebuyers in July 2017 has driven a five per cent increase in the number of first homebuyers getting into the market with this vendor group now representing 19.6 per cent of property purchasers.

Stamp duty has been removed for new and established homes purchased for less than $600,000 with scaled stamp duty reductions for homes purchased between $600,000 -$750,000. The First Home Owners Grant (FHOG) was also doubled in regional Victoria to $20,000 for first homebuyers purchasing a newly constructed home for less than $750,000.

The median house price in Regional Victoria is $419,500 and the median unit or apartment price is $304,500; representing strong opportunities for first homebuyers wanting to get a foothold into the market.

There are many options for first homebuyers right across Regional Victoria. For example:

• The median house price in Belmont is $528,000
• Cowes’ median house price is $472,000
• In Drouin, the median house price is $448,000
• Benalla’s median house price is $257,000
• Echuca’s median house price is $376,000
• The median house price for Colac is $286,000
• Bairnsdale’s median house price is $264,000
• In Strathdale, the median house price is $437,500
• Heathcote’s median house price is $321,250

Units and apartments are a great option for first homebuyers on a tighter budget, especially in more expensive regional towns.

The median house price in Lorne is $1.17m but you can snap up a unit for $567,500 and a house will set you back $795,000 in Torquay but the unit median price is $616,000.

Owning your own home is the great Australian dream and purchasing your first home is one of the biggest decisions you will make.

It’s important for first homebuyers to educate themselves before taking the plunge. The REIV suggests researching the local property market, having a sound understanding of what your requirements for a home are and knowing your borrowing potential as a good starting point.

Visit the Market Insights section of the REIV website to assist with your property research.