First Home Owners Grant: First it giveth, then it taketh away.
If you like living with your parents, sleeping on your sister’s couch or living in your granny’s, granny flat then stop reading now. That’s it. Go on. Shut this website down and walk away. This is not for you. The adults are talking.
Yesterday, the West Australian Treasurer, Troy Buswell revealed the State Government’s plan to cut the First Home Owner Grant affecting established homes to $3000, from its previously offered $7000.
On a brighter note, if you’re looking to build or buy a newly built home then mark September 15th 2013, (when the changes are due to take place), with a big, fat, smiley face, as your First Home Owner Grant receives a nice little buffer, increasing from $7000 to $10,000.
Introduced 1st July 2000 to offset the effect of the GST on home ownership and doubled in 2008-2009 to counter GFC, at the end of the day – it’s a grant – it’s free money. And from the bottom of our wallets, we thank you. It’s $3’000 we don’t have to come up with. But you know what’s better than $3’000 dollars? $7’000.
If you’re throwing up your arms and screaming Whhhhhyyyyyy? I’ll give you a reason. I’ll give you 28.4 billion reasons. (est 2016-17 budget def)
However, I do agree with the WA State Government (wash your mouth out!) in that I don’t believe this $4000 will deter FHB. It’ll just mean renting or staying on my sister’s couch (cheques in the mail) just that little bit longer. Having said that, I don’t think $3000 will be enough incentive for anyone to buy who weren’t already planning to. This may be a political step toward having the grant removed completely.
While not a great day for people looking to buy their first home, it could have been a lot worse. (Shhh don’t mention the stamp duty exemption)
My name’s Mitch Page – and I’m a first home buyer.
For more info on how the state budget affects you, head to: http://www.ourstatebudget.wa.gov.au