The decision to slash Queensland's First Home Owner's Grant Scheme in the state budget has been met with backlash by Queensland's two senior housing sector bodies.
The Housing Industry Association and the Master Builders Association of Queensland have criticised the decision to reduce the First Home Owner's Grant from $20,000 to $15,000.
Potential home owners apply for the grant to raise the money needed to pay for the deposit on a new home, unit or townhouse, if it is valued at less than $750,000.
Head of research at Propertyology, Simon Pressley, told WILLIAMS MEDIA the decision was a "slap in the face" for first home buyers looking to take their first step onto the property ladder.
"If the government is actually serious about helping first home buyers, they should set the grant aside and allow the buyer to make their own choices. But by saying the grant is only available for new properties, the government is limiting first home buyers choices to a very small percentage of Queensland's housing stock," he said.
Executive director at the Housing Industry Association, Warwick Temby, agrees.
"There is really nothing in this budget to promote housing affordability," he said.
"At a time when housing is turning down and migration into Queensland is going up, this is the last thing they need."
Master Builders Deputy CEO, Paul Bidwell, said that while the big injection of spending via the $45 billion infrastructure program, with a significant $250 million at education, is a godsend for commercial builders, the residential housing sector won’t fare as well.
“It’s a triple whammy for housing builders, with the Treasurer calling an end to the First Home Owners Boost, the recently announced waste levy and the impact of land tax increases – which together will raise the cost of building a new home,” Mr. Bidwell said.
“We’re incredibly disappointed that the boost has not been extended further, as there is no denying it was a foot in the door for first home buyers. The rise in first home buyers entering the market since it was introduced in July 2016 is striking, as is the flow-on effect to the building industry.
“With first home buyers numbers already on the decline, which is reflected in Housing Finance data figures, there is no doubt that this decision will have a detrimental impact on a number of Queensland building businesses.
“The waste levy will also have a direct impact on anyone looking to build a new home or renovate an existing one. Once it’s introduced in 2019 it will add up to $1,400 to the cost of new construction and renovation.
“Land tax increases will further increase the burden, increasing the cost of a new home to the tune of around $800-$1,000. All in all, that’s over $2,000 in unnecessary additional expenses as a result of this budget," he said.
Read more the about the Queensland Budget 2018-19 here and access the State Budget papers on the Treasury website.
Find out how to apply for a First Home Owners Grant through the Queensland Government website.
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