Media Release
The Real Estate Institute of Victoria Ltd
Telephone (03) 9205 6666
ABN 81 004 210 897
Thursday 14 January 2010
Success of the first home buyer assistance shows it should continue
The REIV has welcomed State Government figures showing that Victorians responded very positively
to the higher levels of assistance for first home buyers and said it is time to consider its future.
REIV CEO Enzo Raimondo said that the Grant, Bonus and Federal Government Boost had a
significant and positive impact on the property market and the wider economy.
“The Federal Government Boost has now stopped and the State Government Bonus is due to end on
30 June.
“The latest ABS housing finance figures show a direct link between the assistance and the number of
first home buyers. There was an 18.6 per cent drop in the number of loans to first home buyers in
November 2009.
“The number of first home buyers will continue to drop as the assistance continues to be reduced.
“In light of the positive impact on the property market and the wider economy it is time that the State
considered the future shape of the assistance.
“When the Grant was introduced in 2000 the median price of a house was around $242,000, and in
the September quarter 2009 it had doubled to $480,000. Over that time the Grant has remained at
$7,000.
“When the assistance was increased through the Boost and the Bonus it had a positive impact and it
would be a shame if after 30 June the only assistance for first home buyers was the Grant.
“As part of its May budget, the State Government should consider restoring the total assistance back
to the value it was in 2000 or giving first home buyers an exemption from stamp duty,” Mr Raimondo
concluded.
MEDIA COMMENT:
Robert Larocca, 9205 6622 or 0409 198 350
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