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Category: States and Territories / Building and Construction / House and Home / Government and Politics

First home buyers to get extra $5,000 in bid to kickstart WA economy

Tuesday, 27 Dec 2016 14:02:05 | Hayley Roman

The increase is aimed at kickstarting home construction and improving housing affordability. (ABC News: Gary Rivett)

The first home owners grant for West Australian buyers purchasing new properties will increase from $10,000 to $15,000 in the new year, the State Government has announced.

The money is only available to people buying newly constructed homes, after the Government scrapped the grant for existing properties in 2013.

And the $5,000 boost will only apply for one year.

Premier Colin Barnett said the increase was aimed giving the state's slowing economy a "kick along" while improving housing affordability.

"We estimate [the increase] will allow perhaps another 650 people to enter into the first home owners market, obviously good for the industry and good for jobs," he said.

"The cost of that is estimated at around $45 million."

Small Business Minister Sean L'Estrange said he was confident the extra money was sufficient to entice would-be first home buyers into the market.

"We've noticed over the past two financial years that the number of people taking on a new home has been dropping," he said.

"There's going to be a number of people out there, this [boost] will be point where they now go we can get the deposit quicker. We can go and make that decision on a home quicker."

The Government has also increased the income eligibility for its Keystart loan scheme from $70,000 to $90,000 for singles, and $95,000 to $115,000 combined income for couples.

A report from the Housing Industry Association last month warned the state's building industry was facing a second year of steep falls in the number of new homes being built.

The number of new homes built in WA fell 19 per cent in the 12 months to June and is expected to fall a further 22 per cent this financial year.

AustraliaPlus


 

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