WA parliament should provide first home buyers with more certainty following the recent budget announcement that the $3,000 First Home Owners Grant (FHOG) will be terminated.   

We aren’t entirely thrilled that the WA government has seen fit to axe the $3,000 FHOG for established properties. There’s the added complication that the FHOG can’t be halted until the obligatory legislation passes through the WA parliament and this is creating some confusion in the marketplace.

Until there is a deadline, we don’t expect much urgency from first home buyers, which will leave the road clear for savvy investors to continue to cherry-pick the entry level market. However once the legislation passes, whether its next week or next month, we expect there will be a spike in demand for affordable real estate in Perth and even higher prices as first home buyers jostle with investors in a bid to beat the FHOG deadline.

I have listed a one bedroom apartment at 67/12 Tenth Avenue, Maylands for sale for $237,000. The property is currently generating a weekly rent of $310 a week. This sixth floor apartment in a secure complex is just 300 metres to Maylands Station, while the suburb’s emerging cafe/restaurant precinct is attracting plenty of attention. This is a great opportunity for a first time buyer armed with a $3,000 FHOG to get a toehold in Perth’s inner city real estate market and they should act fast before the grant ends or a yield-hungry investor beats them to this gem.