Will increases to the FHOG change the housing market in WA?
We previously spoke about 2017 being an extremely positive year in the WA housing industry. With increased confidence for investors, first and second home buyers, making this year the year to build.
A key change in the property market for 2017 is the increased $10,000 First Home Owners Grant, which has been pushed to $15,000 from January 1, 2017.
Today, we discuss the FHOG increase, how it will alter the property market for the better and why NOW is the time to build.
What the increased First Home Owners Grant will effect and what this means for the WA property market:
- Increases to the First Home Owners Grant & Access to Keystart
As previously mentioned, the increase to the First Home Owners Grant essentially means more people will be able to afford a new home. Not only has this government grant been passed, but the Access to Keystart lending criteria has also been altered. The metro income limit for Keystart loans has been increased by $20,000 and also came into effect from the beginning of the year. Income eligibility for the Keystart loan scheme has increased from $70,000 to $90,000 for singles, $95,000 to $115,000 combined income for couples and $115,000 to $135,000 for families.
This staggering increase means more and more individuals and families have a greater chance of moving into a home of their own. At Express, we are dedicated to providing a solution to the challenge of building a spacious home, that is affordable and aspirational. You can have a bigger backyard, multiple living spaces and even great views from your balcony! See our affordable House & Land packages throughout Perth.
- Increased enquiry for House & Land
As the property cycle has currently hit the ‘recovery’ phase, now is the time to purchase House & Land packages. These packages are at a staggering, all time low and have never bee more affordable.
See the recovery phase below for further information:
- Investor capitalisation on low interest rates
Now is the ideal time for investors to capitalise on extremely low interest rates.
Favourable terms and pricing on land purchase as they press the button on developments for projects that buyers will be eligible for the FHOG anticipating future growth.
- Land availability will decrease
Availability of land will reduce as a result of activity & if enquiry is still strong favourable pricing and favourable conditions for purchasing land will reduce.
5. New land release prices will increase
6. The recovery is the best time to begin involvement
Figures will confirm increased activity and signs of recovery from 6 months before increasing confidence.
7. Established homes within a lower price bracket will begin to sell
Existing homes in the cheaper price range sell as people look to upgrade.
8. Marketing recovery will commence a trend of increased pricing
As second and third home owners enter the market.
9. Land & building prices increase as media reports the market is now hot again
10. Market begins to slow and the cycle eventually turns full circle
For further information on why NOW is the time to build, visit www.buildnowinwa.com.au.
At Express Two Storey Living, we provide the solution to the challenge of building a spacious new home that is both attainable and aspirational.
Contact us today or call (08) 9241 1700 for a chat about your new home build and how we can help you get into the home you’ve always dreamed of.Back to News and Blog