Gympie builders struggle with State's home owner boost axed

Members of the construction industry wants grant brought back before it's too late, saying work has dropped off since the grant was turfed out in June.

IN NEED OF A BOOST: Chris Dodt and Will Wilson want the State Government to bring back the $5000 First Home Owners boost back, saying without it the region's construction industry is faltering. Picture: Troy Jegers

THE loss of a $5000 boost to the First Home Owners grant has been called a major blow to Gympie's construction industry, with one builder saying without it people are renting instead.

Hotondo Homes owner Chris Dodt said the $5000 boost to the First Home Owners Grant, which took it to $20,000, had been making a "huge difference" for his business.

However, it ended in June.

Mr Dodt said there was a lot of activity in Gympie with new families moving to the area because of land prices and the cost of living.

"The First Home Owners Grant gives them confidence to move ahead with their building plans.

Builders at work. Picture: Warren Lynam

"It is a welcome bonus which can make the difference between building or renting," he said.

He said without the $5000 boost to the grant, buyers were noticeably dropping off.

"We have had a reduction in first home owners since the $5000 boost has been cancelled. The banks are getting tougher to deal with and people are choosing to keep renting, instead of building their own homes.

"If the $5000 boost was reinstated I think we would see a lot more young people interested in building their first home.

"The extra $5000 really does make a huge difference."

Regional builders want the State Government to bring the $5000 First Home Owners boost back.

"Gympie has always been a more economical area to live compared to the coast and Brisbane.

"But younger people find the cost and thought of building their first home a bit daunting and they are scared to take the initial step towards building."

The change in fortune for regional areas has prompted Master Builders to call on the State to bring the boost back.

Master Builders deputy CEO Paul Bidwell said the Government was currently deciding how to spend the mining royalties windfall, meaning now was the perfect time to bring back the boost.

"Bringing back the boost to regional Queensland gives first home buyers further assistance to enter the housing market.

"It acts as a pre-emptive measure to ensure building activity in regional Queensland doesn't suffer further," Mr Bidwell said.

"Building new homes builds communities, creates jobs and delivers economic growth where it's needed most.

"When you champion the building and construction industry, everyone gets a helping hand; from your local coffee shop to hardware stores."