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 15^th 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.

First it giveth, then it taketh away. The First Home Owners Grant, not the First Chair Buyers Grant

Introduced 1^st 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

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