WA Government Wants a Smaller Piece of your House

The WA Government has revised the "shared equity" program in which it helps low income earners buy a house during the housing affordability crisis. With interest falling and house prices down 10% from last year, there are new changes to this program to make it harder for people to apply.

Now, the government is only willing to buy 25% of your house, rather than 40%. The maximum price for the house is now $355,000 and single people seeking to access the scheme must now earn less than $50,000 a year to be eligible. The threshold for couples has been capped at $60,000 and at $70,000 for families.

So this scheme doesn't help this homebuyer.. anyone out there benefitting?

$426,000 is your average Perth Home now..

Nine months later... the Perth housing market has dropped 10% since December last year. The average house is now only $426k. Properties greater than $500k dropped 3% in the last quarter and it looks like the bleeding continues for the WA housing market.

Some factors that may show a change in fortunes in this current quarter:

• Increased first home buyer grants by the Federal government yesterday. $14k for those looking for an existing home and $21k kickstart for those buying a new place.
  
• No stamp duty for first home buyers up to $500k house in WA
• Drop in RBA interest rate by 1% only one week ago.
• Continuing healthy WA jobs market

These factors may affect the demand for housing in the coming month. If you have come across this blog in your search for a home in Perth, leave a comment. Whether you are a first homebuyer or UK tourist, or a Singaporean taking advantage of our low dollar... we'd like to hear from you.

$21,000 Incentive not good enough for First Home buyer Grant

The Rudd government has offered an extra $7000 for first homebuyers buying an established home and an extra $14,000 for those interested in buying a new home. Some articles have already slammed this idea as being inflationary to the housing industry, creating a bubble that will burst on the 30th of June 2009.

For a first home buyer in the Perth market, it will be interesting to see how the market reacts to this incentive. This weekend, either people will be rushing out to buy a house or maybe there will be no real effect. Personally, I am considering talking to a home loan broker or asking about a mortgage - not sure where to start. Perhaps a smart home loan broker will advertise on Facebook sometime soon... i would.