First Home Owner Grant to be extended

A MUCH-NEEDED EXTENSION… The Federal Government has extended the First Home Owners Grant for another 12 months. Photo: Danielle Cox.
A MUCH-NEEDED EXTENSION… The Federal Government has extended the First Home Owners Grant for another 12 months. Photo: Danielle Cox.

The Victorian Government is extending the $20,000 First Home Owner Grant (FHOG) for people buying or building a new home in regional Victoria for an extra 12 months, in another measure to support Victorians through the Coronavirus pandemic.

Treasurer, Tim Pallas last week announced that the regional grant, which had been due to end in June this year, will be extended until the middle of 2021.

“We know the Coronavirus pandemic is making it even tougher for young people to achieve their dreams of homeownership – that’s why we’re extending the grant which has helped so many regional Victorians,” Mr Pallas said.

Modelling by the Department of Treasury and Finance predicts property prices may fall by up to nine percent by the end of the year, as well as the unemployment rate more than doubling to 11 percent in the September quarter.

In 2017, the Labor Government doubled the regional FHOG from $10,000 to $20,000 to tackle housing affordability and help Victorians achieve their real estate dreams. Since then, more than 8,800 regional FHOGs have been provided, saving Victorian families $176 million.

To be eligible for the grant, the purchaser or purchasers must be first home buyers buying or building a property valued at $750,000 or less and it must be used as the principal place of residence for 12 continuous months following settlement.

The grant is available for first home purchases across 48 councils, with the Greater Shepparton area among the most popular.