First home owner's grant... Only on NEW homes??

It's not what it's cracked up to be

By Wayne Nicholson

23-08-2017 First home owner's grant... Only on NEW homes??

When I was a lad of about 22 years old I purchased my own home. A second home which I thought was my castle. The State Government in those days means tested each buyer and then gave you some money. In my case the home I purchased was $36,000 ( I did say when I was a lad) in 1979 and I received about $1,700 from memory.

The State Government in its wisdom today have abolished the First Home owners grant for second hand homes and pay a handsome $20,000 grant to first homies who build a new home. This was supposed to get the building industry moving again and when the builders are working the whole town benefits. The builders I speak to have told me that it has had little effect and certainly not the silver bullet that the government thought. I have had robust discussions with members of parliament in both major parties, and the Real Estate Institute of Queensland have continuously lobbied governments on this very matter. The fact is to build a new home will cost you between $150,000 to $180,000 for a good block of land and then you could count on between $180,000 to $220,000 for a decent building. So let’s say you can build a new home for $330,000 and you get $20,000 First Home Owners…you still have to come up with $310,000.There are plenty of good homes on the market for between $230,000 to $280,000 and so let’s say you purchased for $250,000 if you could get $10,000 or $20,000 First Home Owners your borrowings and repayments would be significantly less. My opinion…..it borders on discrimination, and I have voiced that opinion loud and clear to governments in the past and will continue to fight them on this issue along with the REIQ. As usual you have a better chance of being heard at election time so………theirs ears will be ringing from me from now until then.

By Wayne P. Nicholson