The first home owner grant (FHOG) needs to be extended to established homes in Western Australia, to ease the pressure on construction and help more young people into property.
According to Peter Gavalas from Resolve Property Solutions, Perth’s ongoing shortage of tradespeople and builders has severely impacted new home construction and made it impossible for first-home buyers to build a home.
โThe construction industry in Perth is in a tight spot,โ Mr Gavalas said.
โWe’re seeing extended delays and financial strain due to the backlog of projects.
โUnfortunately, this means first-home buyers have fewer new homes to choose from, limiting their options in an already competitive market.โ
He said allowing established homes under the FHOG would mean first-time buyers could enter the market sooner.
“With the construction sector in turmoil and the rental market so tight, we need to adapt our strategies to support first-home buyers,โ he said.
โIncluding established homes in the FHOG could be a game-changer for many, giving them access to a wider range of properties and helping to balance market dynamics.”
โโIn WA, the FHOG currently offers $10,000 to help first-home buyers purchase or build a new home.
However, only new or heavily renovated homes qualify under the FHOG, Mr Gavalas said.
He said extending the scheme would also allow people to buy in inner city areas, which are closer to family and friends.
Mr Gavalas also said allowing infill developers to pay many of the costs of a development project once it was complete, could also help ease the crisis.
โBuilding costs are very high, and thereโs a lot of costs upfront, which means projects donโt always stack up,โ he said.
โThey could relax or postpone costs like headworks and the statuary costs until the back end of the project.
โThat could potentially encourage more more development in the inner city and middle ring.โ
Mr Gavalas said with subdivision costs often upwards of $50,000, it could be a way to encourage more development.
โIt makes it less of a financial impact to get the project started,โ he said.
Last week data showed WAโs population was growing at the fastest rate in the country, with nearly 68,000 overseas arrivals landing in the state in just 12 months, in addition to 11,000 from interstate.
Mr Gavalas said something that rate of population increase was unsustainable and the construction industry could not keep up with demand.
โThey canโt keep up,โ he said.
โThey need more properties.โ
โI think weโre looking at a decade of undersupply and itโs not likely to change until 2030 Iโd say.โ