Industry calls for New Homebuyers’ Budget
While Queensland Government adverts warn homebuyers that the $5,000 boost to the First Home Owner Grant will end on 30 June, the state's property industry is lobbying the Government to expand the incentive program in next month's Budget.
The incentive, aimed at assisting first home buyers enter the market and supporting construction activity, was temporarily increased in the 2016/17 Budget from $15,000 to $20,000. It is available for first time homebuyers purchasing newly built dwellings valued at less than $750,000.
Property Council Queensland Executive Director, Chris Mountford, says the increase to the incentive has had a positive impact on the local property industry.
“Incentivised first home buyers have driven much of the recent construction activity in both the apartment and house and land markets,” Mr Mountford said.
“At a time when governments are crafting elaborate housing affordability responses, it is great to see a simple policy solution having a real effect.”
With increased bank lending restrictions and uncertain market conditions expected over the next 18 months, the Property Council has called on the Treasurer to continue to encourage construction activity by extending the $5,000 boost for another twelve months.
“By continuing to offer a $20,000 grant, the Government will be providing meaningful assistance to Queenslanders striving to purchase their first home while keeping up the momentum of a crucial job creator.”
In regional Queensland, where additional economic challenges are having an impact on wages and activity, the Property Council has proposed an additional $5,000 increase to the grant, equating to a total of $25,000 for regional first home buyers.
“An extra incentive for regional Queensland would ensure the grant has its desired impact for aspiring homeowners and builders right across Queensland, not just in the South East.”
“With record stamp duty revenue anticipated in the Budget - in excess of $3 billion - it makes sense for the Government to invest some of this income to stimulate the economy and provide more young Queenslanders with the opportunity to own their first home.”