First Home Buyers Boost

First Home Buyers Boost

In times where the public is being superbly massaged by Labor spin doctors to save their skins (please review their performance over last 6 years fellow Australian voters), the Victorian Governments new First Home Buyers Boost Grant of $10,000 from the 1st of July 2013 is a great example of government doing something as against nothing. With little fanfare to earn votes or praise Victoria couple have a little window of positive to help them.

As times roll on where young couples being able to even conceive buying a home, with Bankers, Corporate Employers and Governments all equally competing and ensuring (making the) elite wealthy even stronger, these small handouts to the future moms and dads, the future of our country, important and critical. As a tax payer I see it as money well spent against a Prime Minister his wife and kids flying to Indoensia for an 18 hours tea party. Give us a break. Hopefully Australian voters do not get sucked in again. OK back on track now Ross your frustrations are showing through.

The new deal is that First home buyers in Melbourne who purchase a new home from 1 July can look forward to saving an average of $5258 more than those purchasing an existing home.  This clearly to encourage house building and therefore economic activity.

Reforms to the First Home Owner Grant to boost the housing market in Melbourne as more first time buyers take the plunge to capitalise on the bonuses and stamp duty savings.

For contracts entered into on or after 1 July 2013 to build or purchase a new home, a payment of up to $10,000 is available for eligible first home buyers. For contracts entered into prior to 1 July 2013, a payment of up to $7000 is payable to eligible first home buyers. This grant is not means-tested nor is it restricted by the price of the property for contracts entered into prior to 1 January 2010.

On reviewing media releases I noted “Master Builders Deputy Executive Director Radley de Silva said that targeting the grant to newly constructed homes would give residential builders in the region a much needed boost and support jobs.” “New housing starts in Victoria have dropped dramatically and measures like this will help stimulate a positive turnaround in activity,” Mr de Silva said. Those buying a new house off-the-plan in Melbourne will now receive an average of $12,798 in stamp duty discounts and bonuses – up from $9098 (a difference of $3700).”

“Incentivising first home buyers to purchase newly constructed homes is a win-win situation for the local economy. More people will be able to afford a home and more builders will remain viable,” said Mr de Silva

“These initiatives will help our industry to rebound, support local businesses and stimulate investment in the community.”

The State Government announced reforms to the First Home Owner Grant in April.

First home buyers boost is that buyers will receive a $10,000 grant when purchasing a new home from 1 July valued less than $750,000. Their stamp duty concessions will also rise for properties valued up to $600,000 from 30 to 40 per cent, followed by another increase to 50 per cent in September 2014.

SUMMARY:

Whilst the First Home Buyers Boost is very welcomed I would like to see Federal Government (Labour or Liberal) also provide weight to this segment of the economic market. Its not rocket science that housing and general construction market is of long term value to the country. Federal incentives should be weighted with emphasis to “long term green purchases into new and existing homes within a new home to reduce long term energy production”. maybe one or two hundred reductions in politician overseas holidays (oh sorry research trips…) and fantastically paid consultants to be on government sponsored committees could be a step from the clear corruption’s we are seeing within our political bureaucracy.

  SOME OTHER FAST FACTS 

 New housing starts in Victoria have dropped 20 per cent over the past two years from 59,170 in 2010/11 to 47,600 in 2012/13.

 New housing starts are set to rise to about 48,600 in 2013/14.

 The median cost of a vacant block in Melbourne is $212,500.

 The median cost of a house in Melbourne is $448,000.

References
Master Builders press release
State Government revenue Office – click to review more info