Will home buyers grant be extended?

Victorians that are going to purchase a new home will receive more than double the first home buyer's bonus which will be $11,000 but buyers of existing homes are set to miss out.

From July 1 the bonus for existing homes will be $2000. For new homes the bonus will rise from $5000 to $11,000 while regional new home buyers will receive an additional $4,500.

This bonus is in addition to the $7000 Federal government first-home buyers' grant. The federal grant was boosted by $7000 last year on existing homes and by $14,000 for new homes; these are due to expire on June 30.

John Brumby has extended the state payment for a further 12 months but it is more beneficial to new homes as opposed to existing homes and a boost to the building industry. Mr. Brumby further stated that the government has invested $125 million to keep the scheme running for a further 12 months.

These changes to the first home buyers will create more homes and more jobs.

The housing Industry Association estimated that the extension to the grant will result in 4,300 homes being built, securing another 3,600 jobs over the next 3 years.

Over the past 12 months 32,000 Victorians have purchased a new home.

The state bonus payment comes as an extra on top of the Federal Governments grant of $7000 on existing homes and $14,000 for new homes. Unless the grant is extended in next weeks Federal Budget, this boost expires on June 30.

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Published on May 5-th, 2009 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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