A cap of $750,000 on the value of homes eligible for the first home owner grant (FHOG) applies from January 1, 2010. The introduction of a cap was first announced in the 2009/10 Victorian State Budget, but was deferred because of the continuation of the Australian Government’s First Home Owner Boost until 31 December 2009.
The First Home Owner’s Boost Scheme is still in operation, however, will be reduced by the Australian Government to a lower level from October 1, 2009. MICM Sales Manager, Brett Townsend-Booth, says ‘buyers are taking full advantage of the FHBG.
Owners are appreciating this as a good time to sell because of the increased buyer demand pushing up property prices. There is no doubt the strong sales results achieved over the past few months are a direct result of the FHBG’. First-home owners who sign a contract to buy a home from that date will receive an extra $3,500, instead of the current $7,000. People buying a new home will be eligible for an extra $7,000 instead of the current $14,000. After December 31, the First Home Owners Boost will stop and first home buyers will be eligible only for the standard grant of $7000.
Buyers have been encouraged to take advantage of the bonuses before they are phased out. Further information is available at the Victorian State Revenue Office website at http://www.sro.vic.gov.au/ or phone 13 21 61.