Western Australia Leads The Way For First Home Buyers

Western Australia Leads The Way For First Home Buyers

The REIV has called on ALP, Coalition, Greens and others contesting the State Election on 27 November to look at an innovative idea from Western Australia that can help first home buyers.

REIV CEO Enzo Raimondo said that in Western Australia not only do the majority of first home buyers pay no stamp duty but they receive up to $2,000 for use on professional services and incidental expenses incurred in a residential property purchase.

"It's a great idea because it helps first home buyers just when they need it.

"Anyone who has bought a home or is considering doing so knows that it is a difficult exercise it requires a considerable period of saving in order to build the required deposit and an often lengthy search to find the home that meets your needs and budget.

"And when it comes to the actual purchase, the extras that are required building and pest inspections, conveyancing fees, government fees and charges end up eating away at the hard- earned and saved deposit.

"The good news is that the Western Australia Home Buyers Assistance Account does not come from general taxation revenue it comes from the WA equivalent of the Victorian Property Fund.

"Most home buyers don't realise that, in Victoria, every time a home is bought the deposit is placed in a special account and the interest on that account is paid to the Victorian Property Fund. The fund exists to compensate home buyers in case there is a defalcation. Thankfully, it's so rare that the fund presently contains over $300M.

"The problem is that while the money is home buyers', they don't benefit directly from it. The state government uses that fund to pay for a wide range of things, from the operation of departments, affordable housing and small grants.

"It was even used to pay for at a price of over $5M the forecourt currently being built at the Royal Exhibition Centre!

"The REIV believes that home buyers should benefit directly from the Victorian Property Fund and assisting those most in need first home buyers would be a great way to do it.

"Recent data from the Australian Bureau of Statistics shows that first home buyers in Victoria really do need the help. The number of first home buyers has dropped by 45 per cent over the last year.

"In WA the $2,000 in assistance is only payable up to a certain value and is provided as a reimbursement, not a grant. These are sensible ideas that should be considered if the idea is adopted in Victoria," Mr Raimondo concluded.

Other policies from REIV Election Policy Platform can be accessed at www.reiv.com.au.

MEDIA COMMENT:
Robert Larocca, 9205 6622 or 0409 198 350

SOURCE: REIV