September 12, 2012
First homebuyers looking to purchase existing property in Queensland in the immediate future need to give proper consideration to their options before entering the market following changes to the state's first homebuyer grant, cautions Australia's largest independently-operated mortgage broker, Mortgage Choice.
In the budget handed down by the Newman Government on 11 September 2012, the message to Queensland first homebuyers is to buy new if they wish to benefit from government incentives.
The state's $7,000 First Home Owner Grant has been replaced from today by a $15,000 First Home Owner Construction Grant, which applies only to newly-built or off the plan property purchases valued up to $750,000. First homebuyers considering purchasing an existing property will still qualify for the original $7,000 First Home Owner Grant but only if they finalise contracts by 11 October 2012.
While those looking to buy existing properties may feel the pressure to make a decision in order to get in before the grant evaporates, potential borrowers are encouraged not to jump in before they feel ready for the commitment of home ownership.
Mortgage Choice Corporate Affairs Manager Belinda Williamson said, “The revised grant is great news for buyers of newly-built homes or even vacant land, assuming any increase in activity in the state's new-home sector doesn't raise the price of properties and affect affordability.”
“However, there is little help in sight for the majority of first time buyers who look to purchase existing properties, unless they are prepared to sign the contract of sale before the expiration date of the original $7,000 grant in mid October.
“The incentive of the grant's removal should not be the deciding factor when choosing to jump into the market over the next few weeks. It is essential for first time buyers to do their homework and truly decide whether they are prepared for the commitment of home ownership.
“We encourage first homebuyers who have done their sums and who are prepared to buy, to contact their local mortgage broker to arrange loan pre-approval now so they are one step ahead in the loan process. This will allow them to hunt for a home with a clear picture of their borrowing limit in mind.
“Without rushing their decision, first homebuyers who are ready for home ownership and looking to buy an existing home, should get in while the going is still good.”
For further information or to arrange an interview, please contact:
Mortgage Choice Corporate Affairs
02 8907 0472 / 0407 416 124
02 9018 8608 / 0404 381 886