Queensland Buyers Grant cost $2.8bn
The Queensland Government has subsided first home buyers to the tune of about $2.8 billion.
The figure was revealed as the $7000 first home buyers’ grant for existing properties in Queensland was ended. It will be replaced with a $15,000 grant for first time buyers purchasing a new property valued at up to $750,000.
Treasurer Tim Nicholls said 341,077 First Home Owner Grants had been paid to Queenslanders since 2000. Only about 14 per cent or 48,000 were for the construction of new homes. Mr Nicholls said the grant for new properties would help improve the construction sector. Although some purchasers might put the money toward their mortgage, it is hoped there will be a flow-on effect as those building new properties spend more on furnishings, finishes and landscaping.
The Real Estate Institute of Queensland said it was concerned that such mechanisms had historically proven an unsuccessful mechanism for getting first-home buyers to buy new houses.