Changes to first time buyer grant not welcomed by everyone
Changes to the first home buyers' grant (FHOG) are good news for the Victorian construction sector, but not so much for the actual first time buyer, says the Real Estate Institute of Victoria (REIV).
Anyone looking at buying a property for the first time currently receives a grant of $7,000 but this is set to change from July 1 2013 when it becomes a $10,000 contribution that is only available for the purchase of brand new homes.
In the March quarter, around 70 per cent of first time buyers chose an established home.
The institute's chief executive officer Enzo Raimondo said: "Rather than giving a grant that is less than the stamp duty bill and then changing the rules every year, they should provide a full exemption from stamp duty for all first home buyers."
He followed this by saying "the state government should have used its existing policy to ensure no first home buyer would be worse off under these changes".
Meanwhile, executive director of the Urban Development Institute of Australia (Victoria) Tony De Domenico has highlighted the benefits for the building sector, saying that the reforms "will add an urgently needed stimulus to the market for new housing".