Massive Boost For First Home Buyers In Victoria
An unintended overlat of federal and state government budget promises in Australia will see first home buyers in Victoria receive a much needed boost over the next few months.
Fearing the end of the federally funded First Home Owner Boost (FHOB) on 30 June 2009, on 5 May the Victorian Treasurer announced the state would supplement the First Home Owner Grant (FHOG) after that deadline by giving Victorian first homebuyers a bonus of $2,000 for established homes, $11,000 for newly constructed homes in metropolitan Melbourne and $15,500 for newly constructed homes in regional Victoria.
This, in addition to the FHOG and the recently announced FHOB extension, will mean Victorian first homebuyers who enter into a property purchase contract between 1 July and 30 September 2009, stand to receive a possible $16,000 for established homes, $32,000 for newly constructed homes in metropolitan Melbourne and a whopping $36,500 for newly constructed homes in regional Victoria.
The first home buyers grant in Australia will be halved on 1 October 2009 and will finish at the end of this year, but the other grants and incentives will remain.
First homebuyers having more time up their sleeve to research their options and prepare themselves for property ownership provides welcome relief however, the challenge of loan approval remains. First homebuyers need to be mindful of recent changes to the lending criteria which is set by the banks. Many lenders now require borrowers to contribute at least five percent of the property purchase price towards their deposit in the form of genuine savings accumulated over a period of approximately three months, excluding any federal or state government incentives or grants.
First time buyers should also take into account upfront and ongoing expenses associated with property ownership such as legal fees, council rates, strata fees, maintenance and the costs associated with moving, to name a few.
This news has been received with much enthusiasm from potential first home buyers in Victoria.
Tags: australia, boosts, fhog., first home buyers grant, first home owners grant, Melbourne, Victoria
