Budget boon for first home owners and construction industry

Queensland first home buyers and the construction industry will benefit from the Newman Government’s first State Budget, which more than doubles the grant for new first home buyers.

Premier Campbell Newman said first home buyers would receive $15,000 – up from $7,000 – when purchasing a newly constructed home or property off the plan, under the re-shaped First Home Owner Construction Grant (formerly First Home Owner Grant).

“This great initiative will entice more people into the property market and make home ownership more affordable,” Mr Newman said.

“This is now the most generous ongoing first home owner grant in Australia.

“We want to see more Queenslanders buying their first home and this grant will certainly give home buyers a great head start,” he said.

Treasurer Tim Nicholls said the First Home Owner Construction Grant would also provide a much needed confidence boost to the construction sector.

“The property and construction sector is one of the four pillars of the Queensland economy, and one the Newman Government is supporting through real and direct action,” Mr Nicholls said.

“We’ve already wiped up to $7,000 off the cost of buying the family home by reinstating the principal place of residence transfer duty concession.

“The First Home Owner Construction Grant is another component of our positive plan for this vital sector, which creates jobs for Queenslanders.”

Mr Newman said the Government had responded to industry concerns in making changes to the original First Home Owner Grant.

“The Master Builders Association has lobbied on behalf of the sector for changes to the grant and the Government has responded in a constructive way,” he said.

“This First Home Owner Construction Grant will provide a targeted and sustainable injection of confidence to the construction sector.

“The previous Labor government’s Building Boost scheme was a short-term sugar hit which benefited property investors outside of Queensland.

“The Government’s First Home Owner Construction Grant will help more Queenslanders buy their first home and provide a much needed lift to Queensland’s property and construction industry.”

Australia’s largest building industry association HIA has welcomed Treasurer Andrew Fraser’s three months extension to the $10,000 Building Boost.

HIA Queensland Executive Director Warwick Temby said “the extension of the Boost will help the home building industry to gather some momentum and build on the early signs of recovery late last year.

“The Boost had played a part in rekindling interest in building a home. Combined with the lift in affordability from lower interest rates and fierce competition among builders, the Boost has made it a great time for building a new home.

“This timely announcement will help to set the scene for a much needed lift in activity from the thirty year lows the industry experienced in 2011.

“HIA had been concerned that the Christmas and New Year break was making it difficult for builders to finalise contracts to meet the previous end January deadline. The three month extension has removed this problem for the industry.

“HIA is very pleased that the Government has been able to respond to its call for extending the operation of the Boost. The home building industry is a crucial component of the Queensland economy”, Mr Temby concluded.

– Sourced from the HIA