Grant will shield home buyers

THE WA Government recently announced, amidst much fanfare, that the First Home Owners’ Scheme would provide a $7,000 grant to compensate for the impact of the GST on housing costs – something which the Federal Government made public months ago.

The grant will be available to first home buyers who enter into a binding contract after 1 July to buy an existing home or build a new one.

Real Estate Institute of WA president Neville Fox said, while the GST would not apply directly to the sale price of existing homes, over time it would have an indirect impact on existing home prices.

“The flow-on effect of the GST will vary according to market conditions. However, those buyers who receive the assistance early will be in a good position to benefit from future increases in property values,” Mr Fox said.