Victorian government offers increased FHOG for regional areas
First home buyers get a boost, with the Victorian government announcing an increase to the First Home Owners Grant.
First home buyers get a boost, with the Victorian government announcing an increase to the First Home Owners Grant.From 1 July, first home buyers who purchase their home in regional Victoria will now get $20,000 for new homes valued up to $750,000. This is double the $10,000 current first home buyers or buyers in non-regional areas receive.
“This is such a substantial boost to the position and the capacity of first home owners,” Victorian treasurer Tim Pallas told the ABC. “It’ll put them on that first rung movement into their first home, so it’ll make it easier for young people in regional Victoria to buy and live in their community.”
The opposition, however, felt that the government should look more towards cutting stamp duty rather than increasing the grant if they want to curb affordability, according to a report by the ABC.
“Property developers across regional Victoria will be rubbing hands together. This is a terrific outcome for them,” Victorian shadow treasurer Michael O’Brien told ABC online.
The grant will only be available for new builds that are valued up to $750,000 until June 2020. First home buyers wanting to purchase established homes valued up to $600,000 can apply for a 50% stamp duty discount.
Latest property headlines
- Average house deposit hits $120,000: Finder First Home Buyer Report 2022
- NSW: First home buyers can skip stamp duty, but you’ll pay a tax for life
- The Bank of Mum and Dad: Legal risks and insights
- Finder’s Property Investment Index reveals suburbs with highest growth potential
- It’s official: Buy now pay later debt could wreck your chance of a home loan
Image: Shutterstock
Does anyone know if building a new home at building cost of $750,000 is eligible for this FHOG?
Any help will be appreciated! thanks!
Hi Thanh,
Thanks for reaching out.
Yes, First Home Owner Grant will be available to applicants buying or building a new home in regional Victoria valued up to $750,000 provided you’ll meet the rest of the eligibility criteria. If you wish to learn whether you will be eligible for FHOG, check our First Home Owners Grant guide.
I hope this helps.
Warm regards,
Liezl
I’m going to deposit money for purchasing off the plan town house in Melbourne after 01/07/2017. The total price will be 660,000 (land value $150,000 ,construction cost $500,000). Is it possible for me to receive FHOG 10,000 and stamp duty exemption if I’m eligible?
Hi Paul!
Thanks for the comment.
The First Home Owners Grant concessions are applicable for residential properties. Since your property is worth $660,000, it may have a stamp duty discount (not exemption) on a sliding scale and an FHOG grant of $20,000 under the changes being implemented this year.
Alternatively, you can also contact the Australian Tax Office for state-specific advice.
Hope this helps.
Cheers,
Jonathan