GONE are the days of buying a run-down house in the suburbs for your first home.

First-time buyers will now have to set their sights on building new digs to get a helping hand from the State Government after Premier Campbell Newman axed the $7000 First Home Owners Grant.

Under the changes, $15,000 will be available for first home owners who buy an off-the-plan or newly-built property.

Dixon Homes Cairns managing director Andrew Thomas said the move would help the state’s struggling building industry.

“It’s a positive step for our industry,” he said.

Mr Thomas said there had been a lack of first home buyers in the Far North market.

“The most significant factor is (the $7000 grant) will no longer be available for established houses – that’s the single biggest factor,” he said.

“There are low vacancy rates in Cairns and there aren’t a lot of stock of new product.”

Real Estate Institute of Queensland chief executive Anton Kardsah said the decision would affect about 75 per cent of prospective first home buyers.

Treasurer Tim Nicholls said the grant would stimulate the construction sector.

“The grant does not have an expiry date, which means it will give confidence to the construction and property sectors,” he said.

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