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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.
Legislative changes to the distribution of FHOG were anticipated to take effect last Sunday, however, parliament has not yet passed the necessary Bill.
REIWA president David Airey said the state government announced changes to the FHOG in the August budget and was aiming for 15 September as the change-over date, but parliament has not yet fully processed this legislation so the change now looks like happening in 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 new.
“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 change 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 National Government’s housing initiatives outlined in the 2013-14 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 will 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 September 15 as announced in the State Budget.