From The Western Australian today comes news that the West Australian Government is set to fall into line with the other states and territories and axe the First Home Buyers (FHB) Grant on pre-existing dwellings:
WA’s peak real estate body believes the Barnett Government is poised to axe the $7000 first homeowner grant on existing properties, making it available only to buyers purchase a new home.
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”…
According to REIWA, 72 per cent of first homebuyers choose existing homes, rather than new homes.
Predictably, the rent seekers at the Real Estate Institute of Western Australia are up in arms over the expected change, with its president, David Airey, stating that “he is very annoyed about it” and claiming that the Government is trying to force FHBs into “buying a new home contract in an outer suburb”.
If true, the reform is a great move by the Western Australian Government, since it would encourage greater housing construction at a time when the mining investment boom is unwinding. The extra supply would also help to alleviate Western Australia’s crippling rents.
