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Select first home buyers in one state will be happier after government changes will see an extra $3,000 handed to them.
Changes to the First Home Owner Grant (FHOG) in Western Australia have come into effect, with the state's government implementing the changes last week.
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First home buyers of newly-constructed homes are now eligible to receive an increased grant of $10,000 from the state government – a rise from the $7,000 grant that was available previously.
First home buyers signing a contract to purchase an established home will be eligible for a $3,000 grant.
Treasurer Troy Buswell said the changes would help overall housing supply as well as jobs in the construction sector.
“Increasing the grant for new homes will provide first home buyers with a greater incentive to buy or build a new dwelling rather than purchase an established home,” he said.
"This will help alleviate the pressure placed on the existing housing stock by the state’s high population growth and [will] drive jobs growth.”
The state government estimated that each year, around 800 first home buyers will switch from purchasing established homes to new homes in response to the changes.
The bill was delayed in parliament last month. According to Real Estate Institute of Western Australia (REIWA) President David Airey Mr Airey said this was good news for the 70 per cent of first home buyers who preferred to purchase existing, older homes rather than building anew.
REIWA are not in support of the new FHOG changes.
