Western Australia increases first home owners grant

By the resi financial blog team, 26 August 2013

WA increases first home owner grant 2013

One of the most challenging parts of buying your first property is finding enough money to pay for the deposit to go along with your first home loan.

Fortunately, many state governments have put in place various first home buyer incentives to give new buyers a helping hand into the real estate market.

In positive news, first home buyers in Western Australia can take advantage of changes to the government-provided first home owners grant from this September - allowing them to save money on their very first purchase.

In its latest budget for 2013-14, the state government decided to increase the grant for the purchase or construction of new dwellings from $7,000 to $10,000. This will also include houses that are bought off-the-plan.

However, at the same time, they will be lowering funding for established dwellings to $4,000, down from $7,000.

First home buyers will still be exempt from paying stamp duty costs for property purchases under $500,000 for both new and established dwellings.

According to the state government, changes were enforced in order to stimulate the property construction industry in the state. However, the Real Estate Institute of Western Australia (REIWA) has said that this is not necessary.

"The policy shift in the application of FHOG is unlikely to have any impact on boosting construction," said David Airey, president of REIWA.

Mr Airey noted that the building industry is already "flat-out" keeping up with the existing level of buyer demand.

There has been evidence in recent months of the number of first home buyers using the grant for brand new property purchases, with the number of applications rising by 36 per cent in the March quarter.

For help with finding loans for first home buyers with the best fixed and variable interest rates, contact a resi loan specialist today.

Categories: Home Loans