SA First Home Owners Grant ends

SA First Home Owners Grant ends

Posted on Tuesday, June 17 2014 at 10:26 AM

The end of June marks the end of an era for South Australia’s First Home Owners Grant of $5000 with it ceasing to exist in its current form.

Real Estate Institute of South Australia (REISA) chief executive officer
Greg Troughton says the grant has long been a much-needed stimulus for
first-time buyers.

“The one saving grace for South Australian homebuyers was the First Home
Owners Grant for established homes. 
Although this has dropped to $5000 in recent years, it did go some way
to ameliorating the effects of a $20,000 stamp duty for those wishing to buy
their first home at the current median price,” he says.

For the first time in 14 years, this grant will cease and Troughton says
this is disappointing.

“South Australia, Western Australia and Tasmania are the only states
which currently have assistance for first homebuyers purchasing established
housing.  And not surprisingly, these are
the only three jurisdictions in which the proportion of first homebuyers to
total finance commitments continues to rise or at the very least, remain stable.

“Those states that have abolished their first home owner grants for
established homes have consistently seen ever diminishing numbers of first
homebuyers within the umbrella of total finance commitments.”

He says while REISA recognises the significant levels of assistance
currently provided by the State Government towards the purchase of new homes, the
vast majority of first homebuyers (90.7 per cent in South Australia) purchase
established rather than new homes.

“Housing affordability is always high on everyone’s agenda.  This move will simply ensure that it stays at
the very top,” he says.

In replacement of the grant will be $15,000 for
new homes only, up to the value of $575,000. 

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