The Queensland government has recently announced an exciting update for first-home buyers in the state. The first homeowner grant has been doubled from $15,000 to $30,000 for those purchasing or building a new home valued at less than $750,000. This move is expected to assist approximately 12,000 buyers in purchasing their first home by mid-2025.
Premier Annastacia Palaszczuk expressed her support for the initiative, stating that she wants to see home ownership rates continue to rise. She believes that the increased cashback will help eligible first-home buyers take their first step into the property market.
While the expanded grant offers a great opportunity for first-home buyers, experts are concerned about its impact on housing affordability. According to Proptrack senior economist Angus Moore, grants like these often result in an increase in housing prices rather than a boost in supply. Moore suggests that the best way to address housing affordability is by focusing on the construction of more homes.
In addition to building more homes, the state and territory governments could also implement further stamp duty reforms to support first-home buyers. These reforms, along with an increase in supply, could potentially have a more positive impact on housing affordability.
It is important to note that the Real Estate Institute of Queensland (REIQ) supports the intent of the grant to encourage home ownership. However, they believe that the focus should be on addressing supply issues rather than providing a cash boost to buyers. The high demand brought forth by various grants has put pressure on building supplies and tradespeople, leading to increased costs.
In light of these concerns, it is worth exploring alternative approaches to improve housing affordability. The federal government’s Help to Buy scheme, launched earlier this year, is one such initiative that focuses on assisting low- and middle-income earners. Under this scheme, eligible buyers receive a contribution of up to 40% of the cost of a new home or 30% for an existing home.
While the increased first homeowner grant in Queensland provides a much-needed boost for first-home buyers, the long-term impact on housing affordability remains uncertain. It is crucial for policymakers to address supply issues and explore innovative solutions to ensure sustainable and affordable housing for all Queenslanders.
1. What is the first homeowner grant in Queensland?
The first homeowner grant is a government initiative that provides a cashback to first-home buyers in Queensland who are purchasing or building a new home valued at less than $750,000.
2. How much has the first homeowner grant been increased by?
The grant has been doubled from $15,000 to $30,000 for eligible first-home buyers in Queensland.
3. How many buyers are expected to benefit from the expanded grant?
Approximately 12,000 buyers are estimated to benefit from the increased first homeowner grant by mid-2025.
4. Will the increased grant improve housing affordability?
Experts have expressed concerns that the grant may not contribute to improving housing affordability in the long run as it has the potential to increase housing prices rather than supply.
5. Are there alternative approaches to improve housing affordability?
Initiatives like the Help to Buy scheme launched by the federal government aim to address housing affordability by providing assistance to low- and middle-income earners. These programs are often considered as better policy approaches than first-home buyer grants.