Boosts for first time buyers to help construction sector
First time buyers in Victoria will be part of the boost for the construction industry in the state because of changes recently made to the first home buyers grant.
In an announcement over the weekend (April 28), Victorian treasurer Michael O'Brien announced that the grant would be raised by $3,000 to $10,000 and will focus on new construction of residential properties.
While this will be a significant benefit for buyers looking to build, it will majorly boost the construction industry, ultimately positively affecting the property sector with flow on effects.
Executive director of the Urban Development Institute of Australia (VIC) Tony De Domenico said: "Behind every new home stands the employment of a range of tradespeople, employment networks of suppliers and ultimately the retail sector with homes requiring white goods, furniture and services."
According to a Financial Wellbeing study conducted by ING Direct recently, Victorians are already ahead of the country with their mortgage repayments, with more than half (51 per cent) of households ahead with their loans, compared to a 44 per cent national average.
Incentives for construction may ultimately mean more opportunities when buying a house in Victoria for home hunters throughout the state.