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2015-16 WA Budget Eliminated First Home Owner Grant for Established Housing

May 18, 2015

According to the new budget of WA, FHOG is scrapped out for established housing. This news has dealt a blow to first home buyers.

This was done by state government so as to fulfil their desire to focus financial support on residential construction”, said Treasurer Mike Nahan.

He said, “The $3,000 first home owner grant for established homes will be removed following passage of the required legislative amendments. This would bring Western Australia into line with all other Australian states”.

He further added, “Importantly, there are no changes to the $10,000 first home owner grant for new homes or to the generous transfer duty concessions for first home buyers of both new and established homes”.

Real Estate Institute of Western Australia criticised of the decision and on this the president David Airey said, “The government’s logic was flawed, because the oversupplied Perth market doesn’t need more homes”.

He said, “Supply is not the issue in WA, affordability is the issue, and making it harder for first home buyers attracted to existing stock makes no sense. By aiming the first home owner grant to new constructions only, first home buyers who want more affordable, established homes in older suburbs are being disadvantaged. This would create an imbalance in the housing market and add to urban sprawl.

News Source: http://www.rebonline.com.au/breaking-news/9045-scrapping-first-home-owner-grant-makes-no-sense

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