Anyone interested in taking out their first home loan and purchasing new homes in Western Australia (WA) could be happy to know that the recent State Budget announced an increase for the First Home Owners Grant (FHOG) for new dwellings.
Starting on September 15, the FHOG will increase from $7,000 to $10,000 for newly constructed properties.
Acting director of the Housing Industry Association (HIA) in WA John Gelavis said in an August 8 statement that the increase, as a part of the State Housing Supply Package, will immediately be of assistance to the state – stimulating the economy and new housing construction.
"It also provides jobs for the many trades, subcontractors, suppliers, manufacturers and all who engage in the housing industry and who are all part of the large multiplier effect the new home building industry provides the State," said Mr Gelavis.
The budget outlines a further $134.5 million to be spent over the next two years to help increase the amount of public housing available. The plan is to deliver 500 new homes within the next three years – which could be fantastic news for anyone interested in taking out a home loan in the coming years.
Furthermore, a commitment has been made to dedicate another 1,000 homes to the National Rental Affordability Scheme, with the state government estimating to provide $47.8 million (25 per cent) of the costs over 13 years, starting 2015/16.
"All these important initiatives will highly incentivise new home construction and not only address the under build due to population growth but provide desperately needed housing stock and added economic stimulus," said Mr Gelavis.
All of these building commitments could be fantastic news for anyone interested in purchasing new property in WA, for either occupation or investment purposes.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.