First Home Owner Grant changes good news for Western Australia
First home buyers in Western Australia could be interested to know that the median price for their consumer group in the state is currently resting at $450,000 according to the latest data released by the Urban Development Institute of Australia (WA Division) (UDIAWA).
This is an increase of 7.7 per cent ($32,000) compared to 12 month earlier, indicating a returning confidence not only to the market, but to first home buyers investigating property.
Debra Goostrey, chief executive officer for the UDIAWA, said that there were an additional 5,000 applications for the First Home Owners Grant (FHOG) over the 12 months to July compared to the previous period, and nearly twice as many as two years ago.
"There are many first home buyers and investors competing in the same sub-$600,000 market, which is forcing prices up," said Ms Goostrey in an August 29 release.
"We’ve seen the market balance change dramatically over the past 18 months, encouraged by a strong lift in home-ownership, but also the return of investors.
"With mortgage rates of around five per cent, applications for the First Home Owner Grant have increased throughout 2013, despite the rental market vacancy rate lifting from 1.9 to 3.1 per cent over the year."
Furthermore, the proposed changes to the FHOG that were outlined in the 2013/14 State Budget are now on their way to becoming law, after the legislation passed the Legislative Assembly.
The changes are likely to go into effect in October, and will increase the FHOG amount from $7,000 up to $10,000 for newly built homes or those looking into home construction for their first property.
According to Treasurer Troy Buswell, these changes will help boost the number of first home buyers actively seeking property, while aiding the growth of housing stock in the state and providing jobs for the construction industry.
Ms Goostrey went on to say that the lack of available properties in the state was one of the reasons more people were turning towards building their own new dwelling.
"Although established property market listings have increased in recent months, there are still relatively few dwellings priced in the first home buyer and investor range," said Ms Goostrey.
For any first home buyers considering buying a home in Western Australia, new home construction could be the best option for securing a fantastic property deal in the long run.