A Bendigo real estate agent says the state government's extension of the First Home Owner Grant makes sense.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Tweet Sutherland First National director Matt Leonard says the grant is very attractive for first home buyers in Bendigo.
"Effectively, every property that a first home buyer looks at is going to fit within the $750,000 price cap," Mr Leonard said.
The state government announced its intention to extend $20,000 First Home Owner Grant for an extra 12 months this week.
The grant was due to end in June and will be extended until mid-2021.
"We know the coronavirus pandemic is making it even tougher for young people to achieve their dreams of home ownership," Treasurer Mr Pallas said.
"That's why we're extending the grant which has helped so many regional Victorians."
The grant is available across 48 regional councils, including Greater Bendigo, Mount Alexander and Macedon Ranges.
Mr Leonard says first home buyers are predominately looking to purchase homes priced between $300,000 and $400,000.
"It gives first home buyers confidence to know that post coronavirus, they don't have to rush and they will still get the $20,000 grant," he said.
First home buyers are increasingly looking to invest in location in exchange for buying a modern property, according to Mr Leonard.
"First home buyers are happy to secure location with the intention to value add," Mr Leonard says.
"North Bendigo, White Hills and Golden Square are suburbs first home buyers are considering."
In Greater Bendigo, 791 grants have been paid out since 2017, worth about $16 million to home owners.
To be eligible for the grant, the purchaser or purchasers must be first home buyers buying or building a property valued at $750,000 for less.
The property must be used as a principal place of residence for 12 continuous months following settlement.
A $10,000 First Home Owner Grant is offered for purchases in metropolitan Melbourne for new homes up to $750,000.
The Bendigo property market has traditionally been one able to withstand the price downturns experienced in metropolitan cities, Mr Leonard says.
"Bendigo is conservative with its growth, but it doesn't get the troughs at the other end of major events," Mr Leonard said.
"During the recessions in the early 1990s, the Global Financial Crisis and 9/11, our property market was stable," he said.
Data from the Real Estate Institute of Victoria reveals the median house sale price in Bendigo during the first quarter of 2020 increased compared to the previous quarter.
To the end of March, Bendigo's median house sale price was $513,000, up from $470,000 in the previous quarter.