First homeowner grant threatened: REIWA
WA's peak real estate body has warned scrapping the $7000 first homeowner grant for established properties would disadvantage 70 per cent of first home buyers.
Real Estate Institute of WA believes the Barnett Government is poised to axe the grant in tomorrow's State Budget announcement.
REIWA president David Airey says the signs were "worrying" for most home buyers who preferred established homes and would distort the market "at a crucial time in its recovery".
“Other states which have done away with stamp duty relief and changed the rules on the FHOG have seen the numbers of first home buyers crash through the floor,” Mr Airey said.
Real Estate Institute of WA president David Airey sought an assurance from Colin Barnett on ABC radio this morning that there would be no changes to the first homeowner grant system, an assurance the Premier declined to give.
“I’m not going to divulge details of the Budget ahead of Troy Buswell presenting that tomorrow, though I will make the comment that in most other States there has been some rejigging, if you like, of first homeowners’ grants to encourage the construction of new housing and the jobs that go with it,” Mr Barnett said.
“We’ve looked at that and I guess any changes, you’ll have to wait until tomorrow.”
The $7000 first homeowner grant is funded by the Commonwealth but administered by the States.
Presently in WA, the grant applies to homes worth up to $750,000, or up to $1 million north of the 26th parallel.
According to REIWA, 72 per cent of first homebuyers choose existing homes, rather than new homes.
Mr Airey told thewest.com.au he believed the home building industry had been lobbying the Government for the changes, and he believed it had been successful.
“I’m very annoyed about it,” he said.
“We think that it deprives first homebuyers of an opportunity to receive the benefit of choice.
"The Government is trying to force people into buying a new home contract in an outer suburb where the builders and developers have got stock of their g rather than the choice of the buyer.”
