Extra Assistance for VIC First Home Buyers From July 1

Victorians thinking about buying their first home received some good news back in April, when the state government announced it was boosting assistance available for these buyers.

On April 28, it was announced that on July 1 the first home owner grant for the purchase of newly constructed homes or apartments will increase from $7,000 to $10,000, while planned discounts on stamp duty for all first home buyers would be brought forward.

Part of the cost of these measures is to be offset by the scrapping of the current first home owner grant for existing properties - due to expire on June 30.

Many Victorians who may be weighing up their first move in the property market could well be wondering what this means for them.

For some, it could mean that buying a newly built property, or one off the plan, could be a reality for them.

Others may benefit from the boost to the housing supply that these measures are aimed at bringing about, with more new properties reducing price pressure in certain areas and market segments.

Another group set to benefit from more Victorians being able to buy new homes are Victorian builders.

The Master Builders Association of Victoria released a statement today (June 27) in which it welcomed the reforms, due to take effect next week.

Master Builders deputy executive director Radley de Silva said that these measures would benefit the local building industry and residents alike.

"Incentivising first home buyers to purchase newly constructed homes is a win-win situation for the local economy," said Mr de Silva.

"More people will be able to afford a home and more builders will remain viable."

As an example of what Victorian first home buyers might expect, Master Builders say that those who buy a new home in Bendigo after July 1 can expect to save an average of $9,179 more than those who purchase an existing property.

Eligible first home buyers will receive the $10,000 grant when purchasing a new home valued at less than $750,000.

Stamp duty concessions will be available on purchases of new and existing properties valued up to $600,000. Currently these are discounts of 30 per cent, but this will rise to 40 per cent on July 1.

Mr de Silva says that the added assistance for first home buyers will help to boost construction activity in Bendigo - as it has the capacity to do around the state.

"These initiatives will help our industry to rebound, support local businesses and stimulate investment in the community."