The Western Australian First Home Owner Grant (FHOG) changes have been delayed - and that’s good news for many buyers, according to REIWA president, David Airey.
Legislative changes to the distribution of the FHOG were supposed to take effect last Sunday; however, parliament has not yet passed the necessary bill.
The Western Australia state government announced changes to the FHOG in the August budget and was aiming for September 15 as the change-over date, but parliament has not yet fully processed this legislation and the change now looks likely to take place in October.
“This is good news for the 70% of first home buyers who prefer to purchase existing, older homes rather than building new.,” says Airey.
First home buyers are presently eligible for a grant of $7,000 whether they buy established homes or build a new ones. 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.”