Posted May 03, 2018 05:20:16 WA’s population growth has made housing unaffordable for most families, with the WA Government announcing it is boosting the number of homes that can be purchased.
Key points:The Government says it is reducing the number homes that are built in WA from the current 20 to 20 per cent threshold, to 10 per cent of the median house price.
It also says it will boost the proportion of affordable homes from 15 per cent to 20.
The change will see more of the state’s population reach its capacity of 100,000 dwellings.
Premier Daniel Andrews said the change would make it easier for people to buy a house and help ease the housing crisis.
“We’re going to have a lot of families in WA that are getting very close to being able to afford to buy their own home, and we’re not going to do it through any kind of subsidy or help,” he said.
“The new plan is to put in place a new rule that will give those families a new set of incentives and they’ll be able to go ahead and buy their house in a very straightforward and quick way.”
What are the incentives?
Home buyers can now qualify for a 15 per, 20 per or 25 per cent discount on the median price of their home.
If they are over the age of 18, they will get a discount of 15 per per cent on their median house prices, and if they are under the age 18, a discount from 25 per per.
Those aged 65 and over will also be able get a 15-per-cent discount on their home prices.
A 10 per per-cent subsidy on the purchase price will also apply to those who are on a mortgage and can’t meet their mortgage payments.
What does the Government mean by a 15% discount?
“If you’re a family of four with a median house of $350,000 and you’re in a median-priced property in Perth, we’ll have you in a better position than a buyer who’s buying on the lower end of the market,” Premier Daniel Andrews told the ABC.
That will help to alleviate some of the pressure on a lot more families. “
We’ll be giving you a lower mortgage payment.
That will help to alleviate some of the pressure on a lot more families.
You’ll be buying a property with a higher standard of living, and a higher quality of life.”
What does it mean for those on a fixed income?
If you are over 65, the mortgage you buy will be cheaper, so the Government says the 10 per- cent discount will apply to the first $100,000 of the mortgage, and 25 per-per cent to the next $100.
If you live in a home where the mortgage is more than $300,000, the 10- per- per cent rebate will apply, and the 25 per, 25 per and 15 per- percent discount will also increase to 25 per.
Premiers Andrews says a lot can change over the course of a year, but he expects the changes to be fairly permanent.
He said the new rules would be rolled out gradually over the next 12 months, with more details to be announced.
The change means the state has seen a sharp rise in the number and quality of properties being built over the past decade, and is expecting a much greater increase in housing demand in the years to come.
“For a state that’s grown so quickly in the past 20 years, there’s been a tremendous increase in the numbers of properties that have been built in the last couple of years,” Mr Andrews said.
While the Government is targeting a rise in property building, it is not expecting the rise to stop.
Mr Andrews said it is important to note that the state had seen a rise of only one-quarter of the projected 1.3 million new homes built between 2010 and 2020.
“I think the most important thing for us to keep in mind is that this is still a fairly rapid growth in the area,” he told the BBC.
“If we’re going down that track and we can’t keep that pace, then the pressure is on the economy to keep growing.