FHOG on established homes a money maker not a cost!

22 Jun 2017| Posted by: Geoff Baldwin

By restricting the FHOG to newly constructed homes the WA government is not only crippling the established housing market, it is also missing out on a massive financial windfall. Although most first home buyers don't pay stamp duty, every home they buy frees up its owner/s to purchase their next home which is usually more expensive and this continues up the chain with the capacity to produce millions in stamp duty for State coffers. The McGowan Government must stop looking at the FHOG as a cost and see it as a much needed kick start for the long suffering established housing sector and an opportunity to significantly increase stamp duty revenue. Example: ? FHO buys $400,000 home and receives $10,000 FHOG ? Owner of that home buys $600,000 home and pays $22,000 stamp duty ? Owner of that property buys $800,000 home and pays $32,000 stamp duty Even if it stopped there the return on investment to State revenue would be 400% plus but as almost every person/family will repurchase so the chain could very well be much longer.