REAL STATE - Budget delivers for aspiring first home buyers

The Real Estate Institute of Queensland (REIQ) is welcoming the LNP Government’s first-in-a-decade State Budget, applauding a modern shared equity scheme and streamlined tax relief for foreign-owned housing projects.

Over the two-year pilot, the $165 million shared-equity scheme will support 1,000 aspiring first homeowners across Queensland with as little as 2% savings to “close the deposit gap”, offering up to 30 per cent equity for new homes and up to 25 per cent for existing homes. Additionally, the scheme will be available for properties up to $1 million in value (previously announced as $750,000 during the election). 

REIQ CEO Antonia Mercorella said broadening the ‘Boost to Buy’ scheme was a smart, timely step to match market conditions and help more Queenslanders take their first step into home ownership.

“We called for expanded access to shared equity because we know high deposit hurdles are keeping aspiring buyers from getting onto the property ladder,” Ms Mercorella said.

“With suitable income eligibility thresholds of up to $225,000 for couples and $150,000 for singles and a statewide property value cap of $1 million, the scheme reflects modern property prices across Queensland and makes it the most attractive in the nation.

“In Greater Brisbane, the annual median house price is $895,000, and in the Brisbane LGA it's $1.21 million.

“Even for units, annual median unit prices are $770,000 and $735,000 for the Gold Coast and Sunshine Coast respectively.

“The generous cap ensures the scheme is relevant in all corners of our state including high-demand areas like Brisbane, the Gold Coast, and Sunshine Coast, where the median house price now sits above $1 million. Without this adjustment, the scheme risked being out of touch with the reality faced by many first home buyers today.

“With limited placements and a strict focus on first home buyers, this is a measured and proportionate support mechanism. It represents a small share of overall market activity, is unlikely to distort demand, and may assist in rebalancing housing pressure by helping some renters transition into ownership.

“However, I don’t think we can underestimate the material impact this can have on thousands of lives and for generations to come.”

WHAT NEXT FOR HOUSING

Ms Mercorella said the Budget builds on REIQ’s election policy calls and reinforces the view that housing must stay front and centre.

“The supply crisis remains Queensland’s most pressing housing challenge,” Ms Mercorella said.

“We recognise that the Budget materialises funding and builds on a number of previously announced and continuing housing initiatives that aim to address the imbalance.

“Importantly, there is also funding for social and community homes, specialist homelessness services and crisis accommodation and housing supports ensuring the most vulnerable Queenslanders are supported.

“Stamp duty reform remains high on our wish list. It is a long-standing policy direction of the REIQ to see a phased transition to a land tax-based model starting with first home buyers, as well as abolishment of stamp duty for downsizers aged over 55 moving to a home with fewer bedrooms or a retirement home.

“We’ve seen a promising start with some relief for first home buyers through higher stamp duty concession thresholds, abolishment of stamp duty on new builds, and the removal of restrictions on renting out rooms, and now we’d like to see some relief extended to people at the opposite end of the housing cycle - downsizing Queenslanders.

“We’re hearing calls to remove barriers that delay older Queenslanders from downsizing – a stamp duty exemption would achieve this and also, in turn, allow younger families to upsize.

“The REIQ looks forward to continuing working with the Government to help drive housing reform across tax, planning, and productivity.”