Call to change buyers’ grant

EXTENDING the first homeowners grant to include existing properties had the potential to put significantly more people into their own home, according to Queensland’s peak real estate industry group.

But the State Government has rejected any change with its focus to remain on new construction as it helped create jobs in the building industry.

The Real Estate Institute of Queensland wants the first homeowners grant, which was boosted to $20,000 for new properties until December 1, to also be available to buyers of existing properties.

REIQ CEO Antonia Mercorella said it would help more young people get into home ownership sooner.

But Premier Annastacia Palaszczuk said more than 8000 homes, apartments and townhouses had been built because of the increased grant.

“It’s a great help to so many people and at the same time boosts investment in new housing stocks with flow-on benefits for local contractors, subbies and suppliers who rely on the building industry for their livelihood.”

Ms Mercorella said they at least wanted the grant to be able to be used for existing stock in regional towns.

“The anecdotal feedback that we get time and time again is that there is no point (claiming the grant),’’ she said.

“It’s a bit of a pointless grant for many first-time buyers in regional Queensland because often the cost of construction, even when you take into account the benefit you get from the grant, is usually significantly more than what you could pick up an established house for and we hear that story a lot.’’

But Treasurer Curtis Pitt said there was strong take-up of the grant in regional areas.

Since July last year 387 grants had been awarded in Cairns, 246 in the Fitzroy region, 311 in Toowoomba and 464 in the Wide Bay region.

Property analyst Terry Ryder said existing properties were much more affordable.

He said despite the grant, most first home buyers still bought established property.

“That is because they are significantly cheaper, often better located and the grant doesn’t go anywhere near making up the price difference,’ he said.’

Ms Mercorella said for some buyers there was the issue of waiting for a property to be built.

“You have go take into account that you need somewhere to live in the interim.

“That is one of the benefits of an established house, you know exactly what you are buying you can negotiate a settlement date and you can just move right in, so there is those sort of hidden additional expenses and hassle that don’t often get talked about.’’ Need help finding a home? Or do you have a great idea to solve the housing affordability crisis in Australia? Get expert advice and join the debate for a chance to win $500 today at wtf.org.au or on Facebook and Twitter #WTFAustralia.