THE axing of the popular first home buyer bonus is expected to hinder construction in the Wyndham growth corridor, according to Victorian housing developers’ peak body.
Treasurer Kim Wells last week ended the government-funded bonus for first home buyers, which gave up to $13,000 in rebates to city buyers plus another $6500 in regional areas for houses under $600,000.
The grant cut is expected to save the government $163million next financial year.
But the decision not to extend the bonus beyond June has prompted criticism from the Housing Industry Association.
It has slammed the change as “short-sighted” after a recent slowdown in new home sales across Victoria.
With more than 5040 building permits issued across Wyndham in 2011, the association’s state director Gil King said it would be among the hardest-hit areas.
“The first home buyers payments were actually an investment in the state, because it flows over to so many other sectors, like local government benefits, businesses and the hospitality industry to cater for new residents,” he said.
But Real Estate Institute of Victoria spokesman Robert Larocca said the purpose of the bonus had been met.
He said the money would be better spent giving assistance to all home buyers, not just those buying new houses.
Mr Larocca said the government had instead invested $65million to cut stamp duty by 20per cent.
Point Cook Real Estate sales manager Peter Gaidzkar said the financial impact could be offset by other factors.
“Interest rates are coming down and house prices have eased in Point Cook and across Melbourne.
“General affordability has improved, and builders are offering greater incentives to people in terms of discounts or inclusions,” he said.
