The WA Government has just announced that it will increase the First Home Owner Grant. The grant has increased from $5,000 to $10,000 and this will take effect from the 1st January 2017.
Read the FACT SHEET HERE
Accompanying this increase has been a change to Keystart loans. The metropolitan income limit for Keystart loans has been increased by $20,000 and this will also come into affect in the new year.
First homebuyers who purchase vacant land to build their new home will continue to pay no duty on purchases up to $300,000, and pay a reduced amount of duty on land up to the value of $400,000.
First Home Buyers who are buying either an established or newly constructed home will also pay no duty for homes up to $430,000 and then a reduced transfer duty on homes up to $530,000.
To be eligible for the additional $5,000, a contract must be entered into between January 1, 2017 and December 31, 2017 for the purchase or construction of a new home as well as owner builders who lay the foundation of their home between those dates.
The additional grant comes with some terms. The homes must be completed with a specified timeframe. Construction must start within 26 weeks from the signing of the building contract and be finished within 18 months.
Finance and Small Business Minister Sean L’Estrange said the new $5,000 boost payment would apply to contracts entered into between January 1, 2017 and December 31, 2017 for the purchase or construction of a new home, as well as owner builders who lay foundations of their home between those dates.
For those first home buyers who are buying a new ‘off-the-plan’ home, including apartments, will need to make sure construction is completed by June 30, 2019.
As with the existing grant, the boost will also apply to new homes up to the value of $750,000 or up to $1 million if the home is located north of Shark Bay.
This move is a welcome one that has been designed to improve housing affordability for first home buyers.