An Update on the First-homebuyers Grant and How Buyers are Rushing to Cash In
The Victorian Government offered a grant to first-time homebuyers to push through with their plans with the creation of the First-homebuyer Grant designed to provide financial support. Last year, the government developed the HomeBuilder Scheme which was designed to help individuals to stop holding off on their plan to build a home. With the scheme, potential property buyers were able to save on the residential properties they are building, however, the scheme ended last March.
Homebuilding companies had nothing but positive things to say about this scheme because of how quickly land sells out in a matter of hours. The first-home buyers grant, which was first introduced in 2017 is a $20,000 grant available to First-time homebuyers. With the recent announcement of this grant offered from $20,000 to $10,000 in June, so many are rushing in to cash in.
With the grant, a big rush of sales to secure a home was seen which was very much similar to what happened with the HomeBuilder Grant
According to Metricon’s general manager for regional housing Victoria, Phil Barrett, the grant was such a big encouragement to those who want to build a home but are worried about the events that had transpired last year. With the grant, a big rush of sales to secure a home was seen which was very much similar to what happened with the HomeBuilder Grant. Increases in terms of enquiries were also observed which is always a good thing.
Since COVID-19 it’s normal to be a bit skeptical about big purchases, but fortunately, people have become even more interested in building a home in regional Victoria. These grants and schemes opened doors for new builds. The $20,000 incentive for first-home buyers caused a significant and ongoing increase in home buying and building.
In Burbank, specifically, regional sales went up to 16% and even made up 25% of the total sales from February to April this year. This is a huge leap considering the numbers from the same period last year, which is understandable. In Ballarat, reports are stating that land and house packages are selling out fast. The demand is just incredible. Experts are predicting that the demand will continue and even with the drop due to the end of FHOG registration, it will not affect the market in any way so far.
Additionally, there is growing competition among first home buyers and investors on both established and new builds. Potential landlords are cashing in on the vacancy rates that dropped to 0.5 in some regional states. However, the more people taking advantage of this the longer it for builders to complete all the work so while it is great for local communities, there are going to be some challenges.
Overall, the first-homebuyer grant will help so many people and there might be uncontrollable delays that could impact their eligibility. All pending customers must be given ample support to meet the deadline.