At the start of this year we have unfortunately seen the end of the Government’s First Home Owner Boost in Bacchus Marsh and the rest of Victoria and many are concerned that this will mean that we will see a drop in the number of first home buyers we see in the property market for 2010.
Last year we saw a record amount of first home buyers taking advantage of the Government Boost and buying homes. We also had the Victorian State Government Bonus in place which is also said to be ending on the 30th of June this year.
It was great to see that we had so many new people entering in the market last year and the Real Estate Institute of Victoria (REIV) is concerned that if extra Government grants are no longer available then the increase in first-home buyers that we saw last year will dramatically decrease.
The Home Owners Grant of $7000 will still remain in place despite the bonuses finishing but the REIV believe that considering the rising cost of homes that this is not enough.
Whether the first home market does slow down, we’ll have to wait and see but the REIV have submitted a possible Government budget for them that include putting the Home Owners Grant up to $14,000. Let’s hope that at the least there will still be some type of incentive to get first home buyers in the market.
What are your thoughts, should the Government be giving people more incentives to get into the property market, or will we still have enough people getting into the property market without the extra boost? Leave a comment and let me know your thoughts.