Investors expected to return as Queensland’s first homebuyer incentive is axed
Posted on Thursday, October 11 2012 at 5:47 PM
From tomorrow, the axing of Queensland’s First Home Owner Grant could trigger a race back to the market for investors buying in the mid $500,000 price range, according to the Real Estate Buyers Agents Association of Australia (REBAA).
To spark housing construction and jobs across the state, the Queensland Government last month kicked off the $15,000 cash giveaway to first-time buyers purchasing newly-constructed or off-the-plan properties, a move that may see more first homebuyers investing in new properties, REBAA Queensland spokesman Scott McGeever says.
Tomorrow the government will remove the $7000 First Home Owner Grant, a move McGeever believes could potentially bring more investors back to the market due to the reduced competition from first homebuyers.
Investors can still take advantage of depreciation allowances on near-new yet established properties but first homebuyers can’t when buying new, he explains. This means a larger number of first homebuyers purchasing new property could actually turn investors off targeting new dwellings.
“First homebuyers are certainly an important part of the market but there are also a lot of investors out there looking in the same space,” McGeever says
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