New First Home Buyer Incentive to Have No Impact

The new QLD Government have reshaped First Home Buyer Grants in the budget released today. Ray White Maroochydore Principal, Dan Sowden, has real doubts regarding this recent policy change. In particular for the minimal flow-on effect it will have on the QLD property market.

“It has never worked in the past and it certainly won’t work in the future” said Mr Sowden.

“This restructure is undoubtedly designed to create a stronger influence in the new-build sector. However, this will do nothing  for the existing re-sale market.”

According to leading Property Economist Michael Matusik, first home buyers represent just 11% of the total QLD property market.Noteabley, an even smaller percentage of these buyers are actually buying a new property.

As of October 11, Campbell Newman’s Government will remove the First Home Owner Grant and replace it with a one-off $15,000 incentive for first time buyers purchasing off the plan or newly constructed properties. First time buyers who buy established properties prior to the 11th of October will still receive the existing $7000 grant.

In summary:

• $15,000 for first home buyers of new and off-the-plan properties. This applies from September 2012
• New $15,000 grant only applies to newly constructed homes, or properties bought off-the-plan
• Current $7000 grant for first home buyers of existing properties to be scrapped from October 2012

To be eligible, first home buyers must:

• Make the property the principal place of residence within one year of taking ownership and live there for at least six months
• Not sell the property within a year of moving in
• Buy or build a property worth less than $750,000.

To read further insights from Michael Matusik his blog can be found at  http://matusikmissive.wordpress.com/author/matusikmissive/