Victorian Real Estate Buyers 'to Benefit from New Grants'

Real estate buyers hoping to get their first step on the Victorian property ladder are to receive a helping hand from the state government in the form of higher grants.

The Victorian Coalition Government revealed it will be raising the existing First Home Owner Grant (FHOG) from $7,000 to $10,000 on July 1 2013, with the funding available for newly constructed apartments and homes for sale.

This will include properties developed under a homebuilding contract, those constructed by owner-builders and dwellings bought off the plan or being used as residential premises for the first time.

The new grant is being launched in conjunction with a 40 per cent stamp duty cut, with the government stating the two schemes could save buyers over $16,500 on a $400,000 property for sale.

State treasurer Michael O'Brien said his administration are keen to help first home buyers, which in turn will have a positive knock-on effect for the property sector and jobs market as a whole.

"Increasing the First Home Owner Grant on newly constructed properties and boosting the stamp duty concession will make the dreams of many young Victorians become a reality sooner," he said.

"These measures will promote more housing construction leading to more employment, greater housing supply and reduced residential price pressure for Victorian families."

Recent statistics from the Real Estate Institute of Victoria showed the median price of a house in Melbourne rose to $561,500 in the March quarter - a 5.1 per cent increase.

The FHOGs will be available for eligible newly constructed homes worth under $750,000, while the stamp duty concession will be available on all properties for first home buyers valued at up to $600,000.

"Victoria has a large and growing population and this announcement demonstrates the Coalition government's determination to build for growth and strengthen Victoria's economy," Mr O'Brien stated.

The government has also committed to a 50 per cent stamp duty concession for first home buyers from September 1 2014.

The existing FHOG of $7,000 will conclude on June 30 2013, bringing Victoria in line with other states, including New South Wales, South Australia and Queensland.

Mr O'Brien was keen to highlight the benefits of the grant for all areas of Victoria, including real estate in Melbourne.

"Targeting the grant to newly constructed homes - whether in regional Victoria, Melbourne's growth corridors or new CBD apartments - will stimulate the economy and create jobs in the construction sector," he explained.