Thread: First Home Buyer Fiasco

Originally Posted by KevinTurner

I was disappointed to hear the Queensland Government continue to try to pump up the real estate market by lulling first home buyers into a false sense of security in the State Budget when the Treasurer, Andrew Fraser, announced a $10,000 grant for anyone buying a new home and no stamp duty for first home buyers on property purchasers over $600,000.

But wait – there is a catch. You would need to be advanced in your decision making process and negotiations with a builder, have your deposit in place and know when you want to buy because you have a limited time to act.

I have no problem with any support for the struggling building industry although I believe a window of 6 months to buy a newly constructed home, or sign a contract for one to qualify for the grant, is too short and possibly flagging an election is on the way. The ‘Claytons Grant’ – the grant you have when you don’t have a grant.

I am afraid it is taking with one hand and giving with the other and in the long term will do nothing to stimulate the real estate market.

On another point Mr Fraser, since when was the old ‘relic of a tax’ – your words – a ‘subsidy’?

That was the excuse Mr Fraser gave when he announced that the sales tax, or transfer tax as it is now called, was doubled for anyone not buying a first home – about 85% of the market.

Ask most home buyers and they will tell you that the tax they used to pay (50% of what it will be from August 1) was the full tax and not subsidised. I always thought that when an investor bought a property and had to pay double that, it was a form of ‘wealth tax’. Not so! It now appears that anyone who owns a property, even an owner/occupier, is wealthy.

The State Government spin published since the Budget says “Existing homeowners have benefited from a larger concession on transfer duty for the purchase of a home than offered in any other state in Australia”.

Does that justify a doubling of the ‘relic of a tax’?

Anna and Andrew, when you will you see that not everyone wants to own a property? We have a desperate shortage of rental properties now and rents will rise.

Your budget gives no incentive to help that part of the market and need I point out to you that there are more renters than property owners.

We are already seeing default mortgages on the rise. One in eight mortgage holders is now struggling to meet their repayments so now we push more into the funnel.

On top of all this, The State Government has also announced that they intend to deregulate agents commission.

Queensland is the last state in Australia to deregulate. Average commissions are remarkably similar around the country - NSW 2.4%, Vic 2.2%, WA 3% and SA 2.4%. Even with the ceiling in Qld, commissions average 2.6%.

Consumers have always had the ability to negotiate commission down so this should be seen as an opportunity for good agents to get higher commissions. I think the real concern is that The Queensland Government has said that they will open the possibility for disgruntled sellers to challenge a commission in QCAT AFTER the sale, if the seller thinks the commission charged by the agent is too high.

Lets see how they are going to work that one out especially if it is going to be on 'quality of service'.

The game is changing!

This is indeed disappointing and I don't know what they really are up to. But I agree the game is changing which I think will be interesting!