Changes to WA FHOGs take effect

Changes to the Western Australia First Home Owners Grant have taken effect, with first home buyers now eligible for $10,000 for a newly constructed home.

First home buyers were previously eligible for a grant of $7,000 whether they were to buy an established home or build a new home.

Those buying an established home are now eligible for $3,000.

Treasurer Troy Buswell says the changes are designed to boost housing supply and construction jobs.

“These important changes not only reflect sound policy to increase our overall housing supply, but the decision will also help create jobs in the housing sector,” says Buswell.

“Increasing the grant for new homes will provide first home buyers with greater incentive to buy or build a new dwelling rather than purchase an established home.

“This will help alleviate the pressure placed on the existing housing stock by the State’s high population growth and drive jobs growth,” says Buswell.

Property Observer reported on the delay of the bill being passed in parliament last week.

REIWA president David Airey said the delay in the change meant first home buyers looking for an established property still had a few more weeks to access the higher grant.

The change came into effect on September 25.

According to the treasurer’s office, it is estimated that each year around 800 first home buyers will switch from purchasing established homes to new homes in response to the changes.

Western Australia, South Australia and Tasmania are the only remaining states that still provide a grant to purchasers of established homes.