Queensland Treasurer Winds Back The First Home Buyer’s Grant – But Who Is Actually Using It Anyway?
As a mortgage broker based in Brisbane, the majority of first home owners I see are buying existing housing rather than new builds. These savvy clients are seeking value over getting caught out over an insignificant carrot.
A little over 8000 first home buyers have been able to take advantage of the $20,000 grant from July 2016 to December 2017 or a little over 5000 per annum. A drop in the ocean really compared to the wider market.
Many first home buyers turn to the ‘value’ of an existing property that they can make their own and mostly the grant or lack thereof doesn’t make the predominant purchase in this market any less achievable.
Larger deposits are generally required in my experience to facilitate a new build or new stock that can often be at a premium to the market (overpriced). Not really the domain of the first home buyer.
It doesn’t take much to lose $20,000 on an overpriced new build and there is plenty of that around at the moment.
Significant stamp duty concessions are still available for many purchases regardless of the style of property being purchased, and first home owners should talk to their broker to establish their path to home ownership and maximise the savings or deposits they’ve put together. Most find the grant is not a deciding factor to ownership and getting started.
I’d rather see a grant applied for all first home buyers as there used to be rather than something that potentially artificially inflates the new market. As it stands, I don’t see all the fuss over something that is currently helping first home buyers so few in numbers.
Michael Schipper from Talk Home Loans is a home loan specialist and mortgage broker based in Brisbane. Contact him about how to maximise your results from your home and investment lending.