First Home Owner Grant to double for buyers in regional Victoria
Updated
A grant offered to people buying their first home in regional Victoria will be doubled in a move the Andrews Government says is designed to address the state's housing affordability problem.
From July 1, the First Home Owner Grant will increase to $20,000 for new homes valued up to $750,000.
It does not apply for established homes.
The Government said it expected the increase would help about 6,000 first-home buyers.
Treasurer Tim Pallas said doubling the grant would increase the appeal of living outside of Melbourne for young families.
"Decentralisation is a vital part of our agenda. You can't decentralise unless you provide people with housing opportunities and you make housing affordable," he said.
"As a package of initiatives this is far and away in excess of what any other state has done."
Property developers, not buyers to benefit: Opposition
The Opposition said the Government should cut stamp duty if it really wanted to help improve housing affordability.
"Property developers across regional Victoria will be rubbing their hands together. This is a terrific outcome for them," Shadow Treasurer Michael O'Brien said.
"Unfortunately it's not going to make property more affordable for first-home buyers because prices will simply increase.
"If you do see an increase in property prices in response to this grant, which is likely, that will increase the stamp duty that first-home buyers have to pay.
"So it's really a case of giving with one hand and taking back with another."
It follows an announcement from the Andrews Government earlier this week that will see 100,000 housing blocks rezoned and the creation of 17 new suburbs in key growth zones on Melbourne's fringes.
Topics: states-and-territories, government-and-politics, community-and-society, business-economics-and-finance, industry, housing, housing-industry, vic
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