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ABN Group managing director Dale Alcock.

First home grant delay divides industry

One of Western Australia’s largest builders says the delayed increase to the first home owner grant is unfair on buyers waiting to sign contracts, while the Real Estate Institute of Western Australia claims the delay is good news for purchasers.

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Unfortunately that would only be due to Dale Alcock's vested business interest in actually being on the receiving end of the $3,000 increase. Unfortunately this disadvantages those first home buyers (and hence the delay is an advantage to some extent) looking to buy an established home. It is probably therefore balanced out by both types of first home buyers, but will be pushed by big industry as it can only benefit them. Sadly this would only have a detrimental effect on the overall first home buyers group - obvious given the savings this will deliver to the government that overall less money is flowing to the FHOG group. Cleverly disguised by the govt, politically promoted/bulldozed over by industry.

On the other hand the existing grant for established homes stays for now so its a benefit for this group of buyers (which I would think is a bigger group). I think if builders want to keep their work flowing they should just offer a discount to match the new grant. I'm sure they'll more than make it up with variations along the way and in any-case avoiding a 'lumpy' workflow will save them money as well.

This is another example of government attempting to manipulate the market with a big dose of rob Peter - pay Paul mentality. To punish one sector in favour of another is commercially naive and totally unfair. I have been working in the property market for the best part of three decades and it's my experience that when these decisions are made they are motivated more by behind doors lobbying than by a government's educated concern for an industry. The established first home buyer market is not on fie but it's ticking along OK as is the new first home buyer market. There is absolutely no need for creating this imbalance.

I'm on the fence for this one. Either add to the ever growing problem of urban sprawl (as it is Perth's lack of infrastructure can't handle) and buy/build in Whoop Whoop or buy an apartment close to the city which has no room for a change in lifestyle. On the other hand the adjustment in price for established properties due to a decrease in activity will probably absorb the $7k shortfall for now. Really at the end of the day if $7k is swaying your decision to buy new or established then you shouldn't really be buying as you're possibly over stretching yourself. Just my thoughts.

Well said Kristian, at the end of the day the grant is window dressing compared to the pros and cons of other decisions first home buyers need to make. In fact rolling the grant into the deposit because buyers have little or no savings has always worried me as well. Like all stimulus it gets factored into the price so in the long run its a zero sum game. If we do have to have a grant then the rationale for the differential is new home buyers face more expenses and will generally stimulate more economic activity.

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WA revenue

4th↑Competitive Foods Australia$1.38bn
5th↑Wilson Parking$1.14bn
6th↓ABN Group$1.02bn
7th↑Quadrant Energy$995.7m
8th↓Byrnecut$979.0m
105 private companies - large ranked by revenue most recent financial year

Housing starts

1st-BGC Australia2,436
2nd-ABN Group2,184
3rd-Ventura Home Group1,197
4th↓JWH Group1,012
5th-Summit Homes Group746
48 residential builders ranked by no. of starts (2016/2017)

Number of Employees

Private Companies - Large

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