First- home buyers in $ 7m boost
FIRST- HOME buyers in Townsville have ploughed nearly $ 7 million into the local economy since July 1 last year, the latest statistics reveal.
Queensland Treasury figures show the State Government’s $ 20,000 Queensland First Home Owners’ Grant has been claimed for 343 new properties in Townsville from the start of this financial year to March 31.
State Government figures show that the value of the Townsville area grants is $ 6.86 million.
The grant was designed to help Queenslanders make that jump to their first home and, by restricting it to people buying or building new homes, increase activity in the local construction industry.
After June 30 the grant will revert back to its previous amount of $ 15,000.
The grant was boosted from $ 15,000 to $ 20,000 in the 2016 State Budget, and at the time it was meant to last just six months, but its popularity led to the time frame being extended.
Figures also show the total for the 2016- 17 financial year was 341 grants paid out for works to the value of $ 6.82 million in Townsville.
Master Builders deputy CEO Paul Bidwell said the association was urging the Government to continue the momentum it had generated and extend the grant at the $ 20,000 rate beyond this fi- nancial year.
A decision on the grant is expected when the Government hands down its Budget next month.
“Since the boost to the First Home Owners’ Grant was introduced in July 2016, the rise in first- home buyers entering the market has been striking,” Mr Bidwell said.
“It was the much- needed lift home buyers needed to be able to get their foot in the door.
“The flow- on effect to the building industry has been phenomenal.
“For some regional businesses, it is now the biggest part of the market,” Mr Bidwell said.
“Ending it too soon could spell the difference between a small to medium building business surviving.
“Builders may have to resort to staff cuts and squeezing margins.”
Mr Bidwell said as demand for inner- city units, and with them investment housing, slackened, the boost was exactly what was needed to make the concept of building a new home affordable.