UDIA (VIC)

Only 24% of the taxpayer funded First Home Buyer Grants over the past 10 years in Victoria have been used for the construction of new homes, according to a Department of Planning and Community Development Newsletter Research Matters.

Tony De Domenico  Executive Director UDIA (VIC)

The Urban Development Institute of Australia earlier this week called for First Home Buyer Grants to be limited to the purchase of new homes, units or apartments to maximise the employment potential of the taxpayer funded grants to boost jobs.

Executive Director of the UDIA Victoria, Tony De Domenico said, "Purchasing an existing home or an apartment does not boost employment. It is staggering that only 24% of the First Home Buyer Grants were used to build new homes over the past ten years."

Mr De Domenico said, "Behind the construction of every new home stands the employment of a range of tradespeople, employment networks of suppliers and ultimately the retail sector with homes requiring white goods, furniture and services."

"Investment in new dwellings is a major area of economic activity for thousands of small businesses across the State, at the same time Victoria continues to require housing supply because of population growth."

The property industry in Victoria directly employs around 310,000 full time employees, contributes around 12 per cent of the state's gross domestic product and $4.6 billion in taxes to all tiers of government.

Mr De Domenico said, "Calls by the Real Estate Institute of Victoria to dump the $19,500 First Home Buyers Grant was ill conceived and would lead to job losses in the current economic conditions."

"The First Home Buyers Grant should be limited to the purchase of new homes, units or apartments," Mr De Domenico said.

How and where First Home Buyer Grants have been spent - Read the Full Report

Media Enquiries:
Ron Smith, Corporate Media Communications, UDIA (VIC) Mobile: 0417 329 201