Premier John Brumby is set to announce a 50 per cent increase to the Regional First Home Bonus applied to newly constructed homes.

The government introduced the $3000 bonus in last year’s state budget to encourage more young families to choose to buy their first home in regional Victoria.

Today it is expected to announce that the incentive will be increased to $4500.

Government sources believe the move will further stimulate the property market, generate construction jobs and provide an incentive for people to choose to live in regional Victoria.

Premier John Brumby said regional Victoria was thriving and the extra money would continue that growth and prosperity.

“This boost is about encouraging even more young families to buy their first home in regional Victoria,” he said.

“It builds on our Government’s record investment over the past decade in the vital services and infrastructure needed to make our regions great places to live, work and raise a family.

“Boosting the Regional First Home Bonus will attract even more people, stimulate local economies and create construction jobs in local communities.”

Senior development manager with Border home builder Alatalo Bros Rod Jones said the first home buyer grants had been a huge boost for Albury-Wodonga.

“The range of state and federal schemes, along with builder discounts, has stoked the fire for the industry on the Border,” he said.

“It has certainly seen more and more people building and buying their first home.

“The flow on of that is that the sellers have moved up in the market as well, so the effect is not just limited to the first home buyer’s market but real estate in general.

“Border builders are looking good for at least the next 12 months.

“Many of the deals for new homes that these grants have sealed are still to start construction.”

Last year the Federal Government boost gave first home buyers who sign contracts for purchasing an existing property before June 30 this year a $14,000 grant, while those who build received $21,000.

Those grants are not expected to be continued in next week’s Federal budget.