Government boost hits nail on head

CHANGES made to the first home owners grant under the 2012 State Budget will provide a much-needed boost to the construction industry.

Warwick builder Grant Coy is looking forward to building more new homes after changes to the first home buyers grant. Picture: Erin Smith

CHANGES made to the first home owners grant, now known as the first home owner construction grant, under the 2012 State Budget will provide a much-needed boost to the construction industry, one Warwick builder says.

"Well from my point of view it can only help," Grant Coy said.

"Any stimulus is good stimulus."

The former grant system meant first-time home buyers received a $7000 grant for new or old homes.

From yesterday first-home buyers purchasing new homes will receive a $15,000 grant from the Queensland Government, while first-home buyers buying old homes will be left empty handed.

"It is a good boost," Mr Coy said.

"It is more than double the previous $7000. It is not exactly a deposit but it is a good start."

Mr Coy said he had seen a decrease in the number of new homes being built.

"Four years ago I was building two to three new homes a year," he said.

"I haven't had any this year.

"I'm hoping to pick up one or two new homes."

Mr Coy said there would be a flow-on effect to other industries and Betta Bilt Cabinets cabinet-maker Andrew Coy agreed.

"There will be a flow-on effect, but it will be gradual," he said.

"It could take six months for (the industry) to take off again because the approvals all have to go through council."

ELIGIBILITY CRITERIA

Must be your main residence within one year of taking ownership.

Must live there for at least six months.

You cannot sell the property for a year.

The house must be under $750,000.

Originally published as Government boost hits nail on head