Boost for First Home Owners in Queensland

Queensland’s new $15,000 First Home Owner Construction Grant (FHOCG) offers exciting new opportunities for people entering the property market, says leading mortgage broker Lindy Kelly of Loan Market.

The Maroochydore broker said the FHOCG replaces the $7,000 First Home Owners Grant, which was introduced by the Federal Government in 2000.

Ms Kelly said under the new FHOCG people purchasing new property for under $750,000 will be $8,000 better off than under the old scheme.

“If you’ve been thinking of purchasing now is definitely the time to do it,” she said.

Ms Kelly said the grant was providing a great boost to both enquiries and activity of home loan construction since coming into effect in September, 2012.

She said while the grant was an obvious boost to both potential home owners and the construction industry, there were several considerations needed for these types of deals that most normal purchases wouldn’t consider.

“There are things to watch out for and an expert mortgage broker is the best person to guide first time buyers looking to take advantage of the new FHOCG,” she said.

“Buyers should be careful about unscrupulous builders. Even though the $15,000 grant is a huge boost to a buyer’s purchasing power, some builders will try to price it into their total costs so they get the advantage and not the purchaser.”

Ms Kelly offered the following tips to anyone considering taking advantage of the loan:

1)      Make sure you are using a licensed builder

2)      You can buy a property that has never been lived in before

3)      Check the inclusions on the builder’s contract. Ensure the full cost of the property is in the builder’s contract (people may leave out bits and pieces which can potentially have to be funded down the road

4)      Create a contingency buffer – costs can escalate during construction

Further enquiries see Lindy Kelly’s website or call 0421 054 432