Several leading Perth property developers and builders are calling on the state government to contribute to the federal government’s First Home Owner Grant (FHOG) scheme.
Dale Alcock, managing director of Dale Alcock Homes, wants the state government to match the Commonwealth’s $7,000 FHOG, while Peet Ltd managing director Warwick Hemsley said the state should chip in a further $5,000.
“The $7,000 currently offered through the FHOG has been overrun by the recent surge in the market,” Mr Hemsley said.
“To maintain the benefit that the FHOG was introduced to achieve, the grant needs to be raised by approximately $5,000. A state-based first home owners subsidy should be considered to provide the level of benefit to first-home buyers that reflects the recent growth in the market.”
Nigel Satterley agrees that boosting the FHOG would make it easier for first-home buyers to enter the market but said the federal government should also assess boosting its incentive for Western Australian home buyers because it too was benefiting from WA’s property boom through additional GST revenues.
The Victorian government introduced a bonus for first-home buyers in May 2004 and extended the scheme last year through until 2009 in a bid to stimulate growth in its property market.
Under the scheme, buyers who qualify for the FHOG can apply to the Victorian government for an additional $3,000 when purchasing an established home and $5,000 for a brand new home. The value of the properties can not exceed $500,000.
The FHOG was introduced by the federal government in 2000 to offset the impact of the GST.
