Earlier this month, the State Government announced that from the 1st of August 2011, the stamp duty concession for non-first home buyers will be removed.
First home buyer stamp duty concessions will remain for homes up to $500,000, but those who are not purchasing their first property could be hit more than $15,000 in stamp duty for median-priced houses in Brisbane suburbs like Nundah, when buying a new or established home as their principal place of residence.
That’s an increase of more than $7,000.
Speaking after the government announced their plans, Real Estate Institute of Queensland chair Pamela Bennett said the move was likely to create chaos in the property market. “The market is already the lowest it has been in many years and today’s announcement will just make it worse,” she said.
About 60 per cent of all dwellings financed in Queensland in April were to non-first home buyers.
The government also announced the new Queensland Building Boost grant, which will make $10,000 available for all people building, or buying, a new-build home or unit priced up to $600,000 between 1 August 2011 and 31 January 2012.
According to the REIQ, the grant t is also unlikely to assist more first home buyers into the market. “While the grant means first-timers will be able to access $17,000, as well as stamp duty concessions, purchasing a new-build home or unit continues to be out of the financial reach of most prospective homeowners,” Ms Bennet said.
When the First Home Owners Boost was available in late 2008 and throughout 2009, 74% of first home buyers purchased an established home despite $21,000 being available for constructing a new home or the purchase of a new-build.