Changes to the tax system announced in the 2008-2009 State Budget has had an immediate effect on the Queensland property market, according to CEO of Harcourts Queensland, Aaron Brooks.

Mr Brooks said that latest Budget promised significant tax savings to first home buyers, savings of up to $9,500 from 1 September 2008, allowing Queenslanders in all corners of the state to enter the housing market.  

“The property market has quietened a little over the last six months to a year, due to interest rate rises among other factors, however, recent reports from Harcourts Sales Consultants indicate that enquiry is already up, in preparation for 1 July, when the changes take effect,” he said.

According to Mr Brooks, specific benefits to first home buyers included the increase in the first home buyer transfer duty exemption threshold from 1 July and a further increase in September, with the final increase meaning up to 90 percent of first home buyers would be exempt from transfer duty, as well as the full abolition of mortgage duty from 1 July this year.

However, Mr Brooks said it was not just first home buyers set to score, with the homebuyer concession threshold increased from $320,000 to $350,000 from 1 July, providing relief to those who had previously purchased a home.

“With Queenslanders now paying no duty, or less duty, than any other jurisdiction, for all homes valued up to $1 million, the state property market has already benefited and the rest of this year is set to continue at the frenzied pace we have seen over the last few years.”

Mr Brooks’ advice for Queensland property buyers and sellers was not to wait too long to list their property for sale, or start searching for their new one, as more interest meant more competition and less room for negotiating a good purchase price.

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