State budget changes (2 June 2014)
The big news over the past couple of weeks has been without a doubt the Federal Budget (closely followed by the wink-gate scandal from Tony). Many people may not have realised that at almost the same time, the WA State Government also released its budget for 2014-2015. The budget had some far reaching effects across almost every sector in our society. But we would like to discuss the budget and some of the proposed changes to First Home Buyers.
Here is a summary of the State Budget and its impact on First Home Buyers:
Lowering the threshold for established homes.
Previously, first home buyers received a concessional rate on stamp duty on established properties up to the value of $500,000. This has now been reduced to $430,000.
Increase in Land Tax
In the budget, there will be a 10% across the board increase in land tax. This comes hot on the heels of the 12.5% increase in last year’s budget.
The government believes that these changes will encourage first home buyers to build. These changes to the budget are designed to reorientate first home buyers towards building.
However, there has been some strong criticism as these changes will effectively mean that almost half of all first home buyers will not get the stamp duty concession.
REIWA president David Airey said the budget was fairly disappointing for first-time home buyers. Mr Airey said that with the medium house price in WA currently sitting at $460,000, most first home buyer’s concessional rate on stamp duty.
If you are a first home buyer or know someone that is, get them to contact us to chat about the concessions and grants they may be eligible for.