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A delay in changes to the First Home Owners Grant (FHOG) is good for many new buyers, according to the Real Estate Institute of Western Australia (REIWA).
Legislative changes to the distribution of FHOGs in WA were expected to take effect last Sunday. However, parliament is yet to pass the necessary Bill.
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REIWA president David Airey said the state government announced changes to the FHOG in the August Budget and was aiming for a 15 September implementation date, but parliament has not fully processed the legislation so the change looks set for October.
Mr Airey said this was good news for the 70 per cent of first home buyers who preferred to purchase existing, older homes rather than building anew.
“Currently first home buyers are eligible for a grant of $7,000 whether they buy an established home or build a new one. However, once the FHOG changes takes effect, the grant will drop to $3,000 for established homes and lift to $10,000 for new-builds.
“The current delay in the change means that first home buyers looking for an established property have a few more weeks to access the higher grant and, conversely, those who want to buy a block and build will be likely to hold back until the grant lifts to $10,000,” Mr Airey said.
The FHOG changes are part of the Liberal Nationals government’s housing initiatives outlined in the 2013/2014 state Budget.
Treasurer Troy Buswell said the changes would boost grants to first home buyers of newly constructed homes from $7,000 to $10,000 and would help create jobs in the housing sector.
Mr Buswell said home buyers needed to be aware that the new FHOG measures were now likely to take effect in October, not 15 September as announced in the Budget.
