The regional First Owner Grant (FHOG) Is Extended to 30 June 2021
The Victorian government has extended the $20,000 regional First Home Owner Grant for first home buyers who sign a contract to buy or build their new home for 12 months. This was created to support Victorians combating the negative economic impact of coronavirus by the state government.
Victorian Treasurer Tim Pallas announced today this grant is extended to mid-2021 instead of June this year.
This amendment will be included in this week’s debate. And this policy looked to lead more population to live in regional Victoria and step into the real estate market. On the industry side, it also hoped to support builders in regional Victoria during the pandemic.
According to the modelling by Department of Treasury and Finance of Victoria, the price of real estate could drop by 9% by the end of 2020. And unemployment rate could double to 11%. In 2017, the Victorian Labor government has increased the regional FHOG from $10,000 to $20,000 to improve housing affordability and help Victorian own their home. Since then, the state government has offered 8,800 grants and helped Victorian families save 1.76 billion dollars.
To be eligible for the regional FHOG, the first home buyer should buy or build a home where the price is $750,000 or less. And the buyer should live at the property for 12 months consecutively after moving in. This grant is applicable to 48 regional Victoria suburbs, including Greater Geelong, Ballarat, Bendigo, Wodonga and Shepparton. The regional FHOG is a part of “Victorian Home” of the Labor government, which also provides a $10,000 grant for first home buyer in metropolitan area. The $750,000 home price cap also applies.
Victorian Treasurer Tim Pallas said
“We know the coronavirus pandemic is making it even tougher for young people to achieve their dreams of homeownership – that’s why we’re extending the grant which has helped so many regional Victorians.”
“Owning your own home shouldn’t be a pipe dream – we’re helping out with the financial kick-start they need to make it a reality.”
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