Qld: First-home buyers to the rescue
10 Jan 2009 10:58 AM
BRISBANE, Jan 10 AAP - Crisis, what crisis?
The world economy may be giving our political leaders sleepless nights, but it hasn't dimmed the optimism of first-home buyers in Queensland.
In December 3,356 first-home owner grant applications were made, with 2,859 grants paid in the month.
This doubled August figures, when only 1,662 applications were made with 1,603 grants paid.
Treasurer Andrew Fraser says stimulus packages introduced by the state and federal governments account for the increase.
He said the abolition of stamp duty for first-home owners up to $500,000 and abolishing mortgage duty were the state's contribution after the property market was hard-hit by the deepening world crisis.
"The state and federal government acted quickly and decisively, and the stimulus is starting to take effect," Mr Fraser said.
"These numbers indicate gathering momentum in the first home owner segment of the market.
"There remains room for a further round of interest rate cuts when the Reserve Bank board meets next in February."
Mr Fraser said the state's incentives, along with the federal government's boost to the first-home buyer grant and the Reserve Bank's decision to cut 300 basis points off the official cash rate since September had prompted the huge spike in applications.
"It's an encouraging outcome considering the economic climate and the usual slowdown over the Christmas period," Mr Fraser said.
"No-one is suggesting we're out of the woods yet, but this is definitely an indication that the stimulus measures put in place by the state and federal governments are working as intended."
