Last weeks budget announcement dealt a blow to first home buyers that are looking to buy an established dwelling.
In an effort to stimulate the economy, Western Australia’s Premier Colin Barnett announced that first home buyers will be encouraged to buy new homes or build instead of buying existing properties.
The existing $3,000 grant is set to be removed for those wanting to buy an established property, while the $10,000 grant remains unchanged for those first home buyers that are looking to buy new or build. This change follows the original drop of the grant from $7,000 to $3,000 in 2013.
The change is predicted to move through legislation in the first half of the next financial year, and will be set once the bill has received royal assent. The cut is expected to save approximately $109 million for the State Government over the next 4 years.
While this change is expected to stimulate economic growth and boost jobs in the housing sector, it is a blow for first home buyers relying on the grant who will be forced to move to the outer, developing suburbs.
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