In today's state budget, Troy Buswell has announced that the WA government will drop the first home owner grant for existing homes from $7000 to $3000 which will take effect in September. At the same time, as an incentive to build rather than buy a house, the first home buyer grant will be increased by $3000 to $10,000.
Many commentators including the Barefoot Investor Scott Pape have been calling for the scrapping of the first home owner grant for quite a while now because it artificially inflates the value of homes. It seems to come in the right time as the RBA continues to talk about further rate cuts, following the rate cut on Tuesday that brought the Australian cash rate to it's lowest ever point.
Also in the budget was an increase in land tax by 12.5%.
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