Comment News (Gosnells) - - Residential -

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

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