what the state budget means for your house plans

If you've been keeping an eye on the news lately, you'll have noticed a lot of speculation around what the federal and state budget will do for different parts of the economy. If you're looking at a demolish and build project or an entirely new construction, you could be wondering what it all means for your plans.

The good news is, the state budget has retained several key features of fiscal policy that make homes more affordable to build in WA. Unfortunately for those looking at established homes, the first home owner grant (FHOG) for those houses has been axed, but the $10,000 FHOG for new builds remains in place.

The stamp duty exemption for first time buyers purchasing a home under $430,000 has remained in place and Real Estate Institute of Western Australia President David Airey believes this is a huge benefit for the younger part of the market.

"It's a real cost saving and I'm pleased this threshold has not been lowered," said Mr Airey in a May 15 statement.

The Housing Industry Association (HIA) has noted that retention of the stamp duty exemption for land valued up to $300,000 is also a major step towards maintaining housing affordability, as is the state government's commitment to Keystart and other social housing initiatives.

"Focusing financial support on residential construction has been a key policy objective of the state government and the housing elements in the 2015/2016 State Budget announced today by the Treasurer is welcomed by HIA," said Executive Director John Gelavis on May 14.

"These policies will assist in building the much required housing stock for the states growing population and create many employment opportunities for Western Australians," he concluded.

With confidence in the measures around affordable housing going forward, it will be an exciting time for young WA residents to start looking at display homes in Perth and thinking about building their own houses.