Bernie Lewis commented on the legislative changes via Twitter, referring to the reduction as a “blow for first home buyers.”
But Andrew Thompson, lending manager at The Loan Arranger in Adelaide, says he doesn’t expect the changes to have a major impact on loan applications, only on the types of properties first time buyers opt for.
“I don’t think that’s going to have any impact at all, $2,000 isn’t likely to make a significant difference to many people.”
Thompson says the changes are likely a reflection of Australia’s and, in particular, SA’s, slumped building market.
“I think they’re trying to push the first home owner into building. The $7,000 is pretty good, but the building industry has slowed over the past few years so they had to do something to stimulate it.”
Thompson says that, in SA, first time owners who buy an established home will see their FHOG entitlement drop as stated above. However, if they buy a brand new house, or if they buy land and build a house themselves, that entitlement jumps to $15,000 up until 30th June next year.
Any South Australian First Home Owner Grant (FHOG) contracts entered into on or after November 22 will be reduced from $7,000 to $5,000 - but not all brokers are concerned.