Changes to first home owners grant released today

The Real Estate Institute of Queensland (REIQ) has released details of the First Home Owner’s Construction Grant.

On 10 September, the State Government announced its decision to remove the current First Home Owner’s Grant and introduce a $15,000 First Home Owner’s Construction Grant (FHOCG).

First home buyers who wish to take advantage of the current $7,000 to purchase an existing dwelling will need to have contracts finalised by 11 October.

FHOCG facts:

• The FHOCG is worth $15,000
• The FHOCG is for first home buyers who are buying a newly constructed or off-the-plan property
•  The FHOCG replaces the First Home Owner’s Grant which was $7,000
• Those first home buyers who are about to purchase an existing dwelling will have until October 11 to finalise their contract (to be eligible for the $7,000 grant)
• First home buyers signing contracts for new properties before September 12 will receive $7,000 and those signing on or after September 12 will receive $15,000
• The program will be administered within existing arrangements in the Treasury Department Major banks and financial institutions will continue to advertise the FHOCG in their loan marketing material
• The following eligibility criteria apply:
•  It must become your principal place of residence within one year of taking ownership It must be your principle place of residence for at least six months
• You must not dispose of all or part of the property within one year after you start to occupy the residence as your home
• The property must be bought or built at a value under $750,000

The REIQ believes this decision by the State Government will impact the majority of prospective first home buyers and while the savings that first home buyers can obtain through stamp duty concessions are recognised, this won’t be enough to safeguard the current proportion of first-timers in the market.

This should clarify some of the issues.

Graham Lynham