Dale Alcock calls for changes to first home buyers grant to be backdated
REAL ESTATE: The delay of changes to the first home owner grant until next month has received a mixed response from WA’s property industry.
THE delay of changes to the first home owner grant until next month has received a mixed response from WAÂ’s property industry.
Last week, WA Treasurer Troy Buswell announced the changes - which will boost the amount given to first home buyers who build new to $10,000 and reduce the amount given to those who buy established homes to $3000 - would be delayed until the end of October.
The changes were originally intended to start last Sunday, subject to the passage of legislative amendments through government.
Mr Buswell said the proposed amendments still needed to pass through the Legislative Council, which it was likely to do this week, and receive Royal Assent, which he anticipated to happen by the end of next month, before the changes would begin.
Real Estate Institute of WA president David Airey said the delay in changes was good news for the 70 per cent of first home buyers who preferred to purchase existing, older homes rather than building new.
“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,” Mr Airey said.
“Conversely, those who want to buy a block and build will be likely to hold back until the grant lifts to $10,000.”
Alcock Brown-Neaves Group managing director Dale Alcock, however, is calling on the State Government to back-date the changes to September 15.
“Having to wait another month or two is unfair on first homebuyers who understandably have been holding off so that they can benefit from the $3000 increase,” Mr Alcock said.
“Backdating it to the original date of 15 September 2013 is the fairest way to make sure first homebuyers are not waiting needlessly and that they’re not unwittingly thinking they are eligible for the extra money when in fact the increase hasn’t come into effect yet,” he said.
Urban Development Institute of Australia (WA division) chief executive Debra Goostrey said the majority of first home buyers intending to build had not been enticed to hold off by the extra $3000.
Ms Goostrey said most would not delay their purchase due to the scarcity of the products commonly attractive to first home buyers.
“The risk of not being able to purchase their dream block is trumping the $3,000 incentive,” she said.