MOVE TO HURT
REAL estate industry groups are shocked and disappointed by the State Government’s axing of the $5000 boost to the First Home Owner Grant.
The boost was scheduled to end on December 31 but will now finish on June 30.
It was introduced by the previous government last December, increasing the grant payment from $10,000 to $15,000 for purchases of new homes,
HIA WA executive director John Gelavis said cutting the boost was a missed opportunity to support new jobs and the whole of the economy through one of the toughest years for new home building in recent history.
“The boost has contributed to a supply of new homebuyers into the market at a time when home build numbers are below the long-term average, so we were surprised by the comments suggesting that this stimulus was ineffective, particularly when the Labor Party had previously supported the initiative,” he said.
“Whilst we appreciate the position of state finances, activity in the housing industry multiplies throughout the broader WA economy, boosting jobs and training.
“Dropping the boost has diminished those opportunities.
“The hardest hits though are to the consumers, who look to the government to provide the certainty on which they can make one of the biggest decisions in their lives.”
Master Builders WA housing director Jason Robertson said it was not a good start for the Labor government.
“At a time when the property market is struggling and there’s a need for increased demand, especially for firsthome buyers, we’re astounded there was no consultation