This information has been provided by
Doug Disher Real Estate, February 2005 and is applicable in Queensland
only.
THE Federal Government's first
homeowners grant was here to stay, Treasurer Peter Costello
said today. Mr Costello said he envisaged the scheme,
which gives first home owners $7000 to buy a property, could
continue indefinitely.
"I introduced it, it was my idea, I think it has been a good
idea and I am not in the business of taking that $7000 away
from first home buyers," Mr Costello told Sydney radio 2GB.
"It has given young people the opportunity to get into the
market which they wouldn't have had otherwise."
Last week, Reserve Bank chief Ian Macfarlane raised concerns
about the disproportionate amount of money Australians had
poured into housing compared to other investments.
Last June, the Federal Government rejected Productivity
Commission advice, which blamed tax breaks for property
investors for fuelling the house-price boom.
The commission called for an urgent review of the tax
treatment of rental property, along with bans on
millionaires taking advantage of the $7000 first home owners
grant.
Mr Costello said the grant would remain in the Government's
Budget, to be handed down in May.
He said one of the main reasons for the recent property boom
and surge in prices was the lack of land released for
housing.
"I think one of the things that you probably need to
overcome the problem of prices, particularly in Sydney, is
you probably need more land release," Mr Costello said.
"That is one of the things that we have looked at and we
have recommended to the State Government.
"If you want to lock up all of the land, that land which is
available for housing is going to become more expensive."
The Government introduced the first homeowners grant five
years ago to help offset the GST, which was also introduced
in 2000.
