$10,000 grant to have a positive impact on affordable housing
Australia’s largest independently-owned mortgage broker, Mortgage Choice welcomes the Queensland government’s $140 million property stimulus initiative as a solid step towards boosting residential construction activity and therefore helping address affordable housing supply issues.
Running for a period of six months and taking effect from 1 August 2011, the Building Boost Grant introduces a $10,000 contribution to buyers of newly constructed properties, off-the-plan properties and house and land packages valued at less than $600,000.
For buyers to be eligible, their purchase contract must be signed between 1 August 2011 and 31 January 2012. For contracts to build a residence, construction must commence within 26 weeks of signing and they must include a specified completion date of within 18 months.
The initiative comes as an addition to the state’s existing transfer duty exemption for first homebuyer purchases of property valued at under $500,000. These purchasers will also receive the federal government’s $7,000 First Home Owner Grant on top of their new $10,000 Building Boost, ie. a potential $17,000 helping hand.
Individual and corporate investors plus next homebuyers purchasing property under $600,000 will also receive the $10,000 Building Boost Grant.
However, to assist in funding the boost, from 1 August the state government will make adjustments to the transfer duty rates. This includes removal of the existing transfer duty concessions for owner-occupiers. Despite this, the transfer duty will remain lower in Queensland than in any other mainland state.
Local Mortgage Choice in Brisbane franchisee Letitia Vitale said, “Queensland is facing affordable housing undersupply issues that are not going to solve themselves. Strong measures need to be put in place to begin reversing the problems.”
“The state government’s Building Boost Grant is welcome news that will hopefully encourage an upturn in demand for newly constructed residential property, improving supply and affordability at the lower end of the market. This is not purely the domain of first homebuyers, which is why it’s pleasing to see the grant will be shared among all types of property buyers.
“Many lenders are reluctant to finance residential developments at present, so the boost could not have come at a better time. Encouraging local property buyers to purchase new and off-the-plan will hopefully pour more funding into these projects and improve the strength of this market.
“Although only in place for a limited time, the boost should help reduce demand for existing dwellings and therefore help more families, investors and singles to enter or re-enter state’s property market.
“Anyone looking to buy a home to live in or for investment purposes, particularly between now and 31 January 2012, should carefully review the available grants and transfer duty changes to make an informed decision about the timing and type of purchase.”
Visit Letitia Vitale’s website at http://www.mortgagechoice.com.au/brisbane1 or call (07) 3211 7744
For further information or to arrange an interview, please contact:
Letitia Vitale
Mortgage Choice in Brisbane
(07) 3211 7744
