Hi all,
I've spent this evening reading the Queensland 2012 Budget Speech and noted that they are scrapping the $7000 First Home Owners Grant and introducing the $15,000 First Home Owners Construction Grant. The reasoning they say is that house prices were just being bumped up $7000 and the new grant will better assist first home owners and stimulate the building industry.
This is more an opinion but living in Logan (just outside Brisbane), I've noticed new home and land packages going for $350,000 – $400,000 minimum and these aren't close to public transport and quite some distance from the city. Where as in Logan itself prices can be cheaper, more accessible to public transport and closer to the city.
Would be interested to hear what people think will happen to prices in SE QLD as a result of this change in the grant.
Likely to help new home developers for a start, don't expect it will have a large impact however. What would be a major boost to the industry would be the phasing out of stamp duty for all buyers in my opinion.
Agree with Tom certainly here in Qld that will be the day when they do away with Stamp Duty.
The new LNP Govt bought down its first budget today in Qld and with the position the former Govt left us we certainly wont see a reduction in purchase costs over the coming years.
If you cast your minds back to 2000 all State Govt told us that they would do away with Transfer Duty with the introduction of the GST. Some 12 years later and we are still waiting.
Cant see any change to the Qld market at all. New Home Sellers will increase their prices by $15K to allow for the Grant and valuers will down value new stock by $15K. Nothing will change.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Certainly doesn't help those that were looking to purchase older properties, more affordable properties, but i can see what they are trying to achieve, whether or not they do, time will tell.
Here is a link the media statement with a little more info.
So has this already kicked in?
Hi Nguli,
Yes I believe it has already kicked in, very interested to see how it affects prices.
Hi Rudra,
I couldn't really see it being a positive thing?! Most first home owners I know have had to buy an old cheapie as a foot in the door to the property market. And it's a great way to learn renovation skills and add equity. In my opinion even though it is double the amount there will probably be less people claiming it, which will be saving the government money. Right or wrong it should be interesting to see how it effects the Queensland property market!
Cheers,
Nathan
Most first homeowners who buy a cheapie, are often paying the same price for a suburb close to a CBD, that they would pay for an outer suburb property. You look at all the new developments around Brisbane, (Northlakes, Burpengary, Springfield Lakes, Ormeau – not really Brisbane but a lot of Brisbane workers commute from here, even Ipswich) You can get a 3-4bed 2 bath single/double garage for around $350-450k, though some people would rather buy a run down old queenslander half the distance and do "make shift renos" (dodgy touch-ups that don't really work anyway).
By making it cost 7k more with out the FHOG and 15k less for these newer suburbs, and with a lot of builders offering an additon $10k rebate atm, that means you will be $32k better off to buy in these outer areas, they are trying to push people into these areas, as the building industry isn't getting the pace they need atm and the government wants new houses not transfers of existing houses, as it doesn't help expand.
Hi Aussie Guy,
I agree that the prices of these new developments are on par with the old queenslanders which are closer to the city. However if you look at house prices for established houses the same distance from the city as these new developments then there seems to be a significant price difference (between 50k to 100k based on my research). As a first home buyer even with the FHOG and the rebates being offered you would still be required to come up with an extra 2k to 7k as a deposit (assuming they only wanted a 10% deposit).
I think if they want to promote new houses then builders need to start getting realistic about the environment they are operating in. I recently got quotes from about 6 different builders for a granny flat and was quoted from 60k up to 140k, that is a huge difference and makes me wonder if they really want the work. I also know of a few people looking to build houses but the run around they have been given by builders is prompting them to look at the established market to save time, money and a lot of hair pulling.
Hi guys,
New kid in the block!
I have just returned from holidays in the States and realised the new FHOCG replacing the old FHOG. Would really appreciate if anyone can offer some suggestions.
Initially I was planning to buy my first home between Nov 2012-Feb 2013 with a budget of $300k-$375k for 2 BR older properties. However, with the new scheme, if I don't buy now, I wlll not be able to apply for the FHOG.
If I decided to buy later and to claim FHOCG, most new developments around Brisbane will cost at least $450k for a 2 BR and will be too much from my budget, which also means I will be buying older properties without the FHOG.
Do you guys think I should lock in a purchasing contract by 12 Oct? Less than 7 days to go, do you think there will be time for me to source a home, negotiate the price, title/valuation documentations, sort out pre-approval etc…
Any response will be greatly appreciated!
Thanks!
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