New buyer grant remains open – for now

New buyer grant remains open – for now

Australia
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Agents in Western Australia can deliver good news to buyers: the first home owner’s grant for established homes is still open for the time being.

It looked like all hope was lost when the state government decided earlier this month to scrap the $3,000 grant for established homes, although it still retained the $10,000 grant for new builds.

However, first home buyers who want established homes still have a few weeks to receive the grant, according to Real Estate Institute of Western Australia president David Airey.

“While the $3,000 first home owner’s grant will be abolished, this won’t happen until the necessary legislation passes through the parliament,” Mr Airey said.

“Eligible first home buyers who purchase an established home prior to the legislation receiving royal ascent will be able to receive the grant, even if settlement is after this date.”

The government hasn’t provided an exact date that this will occur, but has indicated it will be in the second half of 2015.

“Despite the changes to the first home owner’s grant, entry level buyers still do not have to pay any stamp duty for homes up to $430,000,” Mr Airey said.

“This helps greatly with affordability and saves many first home buyers around $14,000.”

The government said eliminating the grant for established homes will push more first home buyers to look at new constructions, which drive more development.

“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,” Mr Airey said.

[Related: Government grants remain divisive issue]

 

 

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