WA’s First Home Owner Grant is getting a major cut at the end of the financial year. The State Government announced it would be reducing the $15,000 grant to $10,000 effective from July 1, 2017.
“Yes, this is disappointing for the first home buyers planning their new home journeys. But, we’re brightside people and it has been excellent to have had the boost to the grant, and that it will continue at $10k, in addition to the other incentives our first timers enjoy.” - newhomesguide.com.au
The grant was bumped up to $15,000 from January 1 this year and was expected to remain in place throughout 2017. However, due to budget challenges and low activity in the new homes and real estate markets, the added incentive is being withdrawn early.
So, right now is the best time for first home buyers to take advantage of the grant at its boosted level. They will continue to be eligible for the $15,000 grant if they enter into a contract to build or purchase a new home before June 30. Owner builders will also remain eligible if they start laying foundations before that date.
WA Treasurer and Finance Minister, Ben Wyatt believes the boost was an ineffective mechanism for stimulating the housing and construction market. "Ceasing the boost early will allow the State Government to fund higher priority areas while ensuring Western Australian first home buyers continue to be eligible for generous Government assistance,” he said.
The cut is an action that has been taken to repair the budget and is expected to save the Government approximately $20 million over the forward estimates period.
After July 1, first home buyers will still be eligible for a $10,000 grant when purchasing a home valued up to $750,000, which remains a significant financial bonus and a big help.
Perth is home to Australia’s most active first home buyers market according to reports from the Real Estate Institute of WA. The market saw a small boost early this year, and future reports will indicate if the cut has impacted its recovery and growth.
If you’re considering building or buying, enter your contract before the June 30 deadline to take advantage of the grant. For more information on grant eligibility, visit: https://goo.gl/ru8VNg.