From today onwards, first home buyers planning on purchasing an established property will no longer be able to access a state-funded first time buyer grant.
In the 2015-16 State Budget, Treasure Dr Mike Nahan announced the government’s plans to abolish the First Home Owner Grant of up to $3,000 for the purchase of established homes.
In delivering the West Australian State Budget in May, Dr Nahan said the removal of the first home owner grant for established properties would apply to all established properties purchased on or after 3 October 2015.
South Perth’s Mortgage Choice broker Tyson Lewis said the removal of the first home owner grant for established properties would be a blow to many first home buyers.
“Data from Mortgage Choice shows more than 80% of first time buyers will purchase an established property. As such, it is fair to say that this change will negatively impact a lot of first time buyers,” he said.
But while first home buyers may consider the removal of the grant to be disappointing, Mr Lewis said now is still a great time to be a first home buyer.
“Interest rates continue to sit at record low levels, making the cost of borrowing more affordable than ever before,” he said.
“In addition, recent data from CoreLogic shows property values across Perth have stagnated over the last 12 months, allowing first home buyers to snap up a great property at an even better price.”
Mr Lewis said potential first home buyers who are concerned about how the removal of the grant may affect their property plans should speak to a professional mortgage broker.
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