Huge spike in first home owner grants
THE State Government is on track to approve $20 million in first home owner grants this financial year after a 30 per cent spike in applications.
Almost 750 grants have been approved already this financial year. The total for 2016-17 was 683.
The government’s $20,000 first home owner grant ends on June 30.
Holly Power and Alex Hart used the first home owner grant to buy land at Oxenford’s Harriet Lane estate.
They said it was tough competing against interstate and overseas investors for existing properties, so chose to build instead.
“It is hard to find a house on the Coast for under
$500,000, especially for something you want and to yield positive gains,” Mr Hart said.
“Purchasing land and building allows us to live in a brand new house and add value through a pool and outdoor entertaining area.
“We can build equity on the house and use it as a stepping stone to purchase another property.”
REIQ director John Newlands said young people were better off buying property on the Gold Coast because mortgage repayments were often less than what it would cost to rent.
He also said interest rates were low and looked to remain static.
“That’s incentive for people to buy,” said Mr Newlands, who is also a Surfers Paradise real estate agent.
However, he said building was often more expensive than buying an established property and it was restricted to the north and south of the Gold Coast where land was available.
“The grant was really designed by the government to stimulate the building industry,” Mr Newlands said.
He said bargains could be found in and around Surfers Paradise; buyers just needed to weigh up what they wanted.
“There’s still something for everyone (but) if you love surfing, there’s no use moving to Coomera,” Mr Newlands said.
Buyers agent Tony Coughran, of Gold Coast Property Advisors, said first home buyers also had options in the heart of the city where places like The Star Gold Coast and Pacific Fair were easily accessible.
“Those first home buyers are looking at other opportunities to satisfy their lifestyle, and looking for points of difference, like waterfront units,” Mr Coughran said.
“The grant doesn’t even come into the equation for those people.
“The reality in the market place is that the $20,000 grant doesn’t go far when you’re buying brand new.
“Generally, you’re going to see people who take advantage
of the grant whether there’s value or not.”
Both Mr Newlands and Mr Coughran believed the number of people applying for first home owner grants would likely drop after June 30.