22 July 2011

MEDIA RELEASE: BLIGH PULLING WOOL OVER FIRST HOME BUYERS

The State Government while assisting the ailing building industry to recover from partly self-inflicted poor economic and political conditions, Premier Bligh and Treasurer Frazer is pulling the wool over the eyes of First Home Buyers.

Despite the seemingly generous increase in first home buyer grants and concessions in the new building market, first home buyers should be aware of higher building costs and steady market price conditions that may cause an unfavourable net saving to the buyers over buying existing homes.

Rapid Realty Townsville’s Principal, Aaron McLeod is encouraging first timers to carry out proper due diligence before buying property and consult with their solicitor, finance broker, accountant and real estate professional.

New homes purchased 2-3 years ago being sold again today as existing homes are fetching discounts of up to 10-15% while the general market has seen a more modest easing in median prices.

Existing housing sellers, landlords and buyers will be worse off under the State Budget 2011-2012 announcements, while the new building sector should experience increasing enquiries and sales due to these changes.

It is true however that Townsville’s First Home Buyers have exercised resurgence to the property market since the Queensland Government announced changes to first home buyer grants and transfer concession rates in the State Budget 2011-2012.

Housing finance data released last week by the Australian Bureau of Statistics (ABS) for May 2011 shows that as a proportion of all owner occupier finance commitments, first home buyers accounted for just 15.4% of the market.

During the month of May there was a 17.2% increase in new home loan commitments by first home buyers across the Country from the previous month (RP Data Property Pulse, July 2011)

Rapid Realty Townsville Principal, Aaron McLeod said; "Like the increases in national statistics, first home buyer enquiries in Townsville have increased since the grants and concession rates were announced in the State Budget 2011-2012.

These changes take affect from the 1st August 2011 and are designed to encourage first home buyers into building a new home. Both the building first home buyer grant and concession rates will improve while concession rates for the first home (non building) grant will be abolished and transfer duty concessions will increase.

The Federal Government's $7,000 first home buyer grant will be available for both new building and existing new home buyers.

This is another strong case for "buyer beware".

Townsville Real Estate Blog
www.rapidrealty.com.au
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