Government to remove cap on commissions

The Queensland government announced on 15 June 2011 that they plan to deregulate real estate commissions in Queensland. No date has been given to when this might occur.

This would remove the current cap on commissions for residential property.

The benefit to agents will be they can charge higher commissions for properties that require more work to sell than the standard house. It should be noted that this has been the case in other states for some time. Also the removal of the cap has not seen commissions increase.

At this stage the government is simply calling for submissions. The government has also indicated that QCAT (the consumer tribunal) would have power to overturn unfair agreements.

$10 000 grant for new homes

Any person or company purchasing a new home or signing a building contract between 1 August 2011 and 28 February 2012 will be entitled to a $10 000 grant.

First home owners

First home owners living in regional areas will lose their grant of $4000 but will still be entitled to the stamp duty concession.

Home owners

Unfortunately from 1 August 2011 the stamp duty home concession will disappear. This wont affect first home owners but will affect people who upgrade or who move town and want to buy in the new location. On a $500 000 house they will have to pay an extra $7000 approximately.

In relation to the changes they will affect contracts signed after 31 July 2011.