The Queensland First Home Buyers market continues to remain in a high position.
What is the Current Queensland First Home Buyers Grant?
The FHBG (First Home Buyers Grant) scheme is a Queensland state government initiative. It is valid for 6months at a time; at which time it is either updated or renewed. The Grant values and concessions can and do change. You will need to reconfirm this at your time of buying. This Grant is solely to help first home buyers with the purchase of a new dwelling valued at less than $750,000.
The Grant is currently $15,000, and also has Stamp duty reductions and concessions.
What is the eligibility criteria for these First Home Buyer Grants?
- You must at least 18 years of age
- You must be an Australian citizen or permanent resident (or you’re applying with someone who is)
- You or your spouse have not previously owned property in Australia that you lived in
- You must be building or buying a new home
- You value of the house is under $750,000
- You must move into the new home as your principal place of residence within one year and live there continuously for six months.
The Grant is paid per new home and not to each of the applicants for the same home. For more information visit
https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant/apply-first-home-grant
Bonus First Home Concession
You can claim a first home concession for transfer duty when acquiring your first residence if you meet specific requirements.
The first home concession only applies to a home valued under $550,000 and can save you up to $15,925. The home concession may still apply for a home valued over $550,000.
First home vacant land concession
A first home vacant land concession for transfer duty when acquiring vacant land to build your first home, if you meet specific requirements. The first home vacant land concession only applies to vacant land valued under $400,000 and can save you up to $7,175.
Visit the following page for details of this concession, https://www.qld.gov.au/housing/buying-owning-home/advice-buying-home/transfer-duty/how-much-you-will-pay/concessions-on-transfer-duty/concessions-for-homes/about-concessions-for-homes.
Are there any other First Home Buyers grants available?
Some Builders and Developers are also offering grants on specific properties and locations.
Australian Bureau of Statistics results from May show that the First Home Buyer Activity is growing.
So why exactly are first home buyers so happy?
Fewer Investors – with the Federal election many investors backed off. This has freed up lenders money, making the lenders chase new markets. Investors and first home buyers regularly compete for the same types of properties,
Perceived Price falls – first home buyers seem to be happier believing that the market has softened here in Queensland. Although this was not the case media reports that it had encouraged them to jump in.
Leading First Home Buyer Locations
Extra First home buyer incentives – Show me someone that doesn’t love free? First home buyers of any age are no different. They responded well to some discounts and grants offered by builders and agents.
While access to finance after the royal commission has become more complicated, low-interest record rates have driven the boom of both investors and First Home Buyers.
The popularity of First Home Buyers with Lenders. Due to these generally being young, just starting a career and typically two incomes, along with a long time to repay the loan. This market is seen to be popular with lenders.
They will also be future repeat clients of these lenders.
First home buyers will not likely abandon the housing market soon. Many will come back as investors or 2nd home buyers.
According to the Domain First Home Buyers Report 2019, https://www.domain.com.au/research/domain-first-home-buyers-report-march-2019-813905/. Shows that the fastest area for first home buyers to save for a unit or townhouse is in the Logan – Beaudesert area. The Logan – Beaudesert area is also the quickest area to save for a new home. But then travel to the city from some southside suburbs may be a bit further when compared to the north side. But that only is an effect depending on where you work.
Growth in these areas may be lower compared to the other more expensive (relative) areas. However, this is dependent on the complex and location within those suburbs. I have seen properties grow at 5% PA year on year, and others drop value by 5 to 10% after-sale and not recover for 5-8 years.
However, the good news is it takes less this year when compared to last year to save your first deposit in virtually all areas of the Greater Brisbane market.
First home buyers will get better opportunities with a mortgage broker when their deposit is at or above 20% than if they are at the absolute minimum needed. That goes for everyone in the loan market.
Mortgage repayments can sometimes be less than the rent that is currently being paid. But according to brokers that should still be thrown at the mortgage to reduce it as fast as possible.
There’s plenty of opportunities for First home Buyers to grab a new home in any part of the greater Brisbane area at the moment. Buying new homes saves having to go to open houses all day Saturday and fighting it out with auctions or multiple offers.
Buying a new home be it for First Home Buyers or Investors is so much simpler. If you are in the market give Ian Partridge a call on 0415 733 349 or email us at the address below.
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