First homebuyers in Victoria will receive up to $22,500 when buying their new homes as the state government funneled about $125 million to the scheme.
Starting from 1 July, first time buyers purchasing new homes in regional Victoria will get $22,500. For those who chose to buy new homes in metropolitan area will receive $18,000 grant while buyers who opt for existing properties will get $9,000.
This boost from the Victorian government is in addition to the Federal government's boost of $7,000 for existing housing and $14,000 for new ones. This expires on 30 June unless the Rudd government decides to extend it.
The Real Estate Institute of Victoria (REIV) president Adrian Jones applauded the move.
"The combination of the grant, boost and bonus has been instrumental in driving the housing market. The REIV's March Quarter median prices showed that the highest demand over the last twelve months had been in suburbs popular with first home buyers, Craigieburn, Melton South, Hillside, Caroline Springs, Werribee, Wyndham Vale and Meadow Heights.
"We also saw last weekend 1,000 private sales reported from the previous week, the most we have seen for a few years. These results underscore the important role of the financial assistance. The ongoing assistance will also help ease pressure in the rental market," he said.