First home owners’ grant update

REIQ Chief Operating Officer Dean Milton has stated that while the REIQ welcomes the intent to encourage more Queenslanders to achieve home ownership, it would have preferred to see supply tackled head-on. Mr Milton said,

“We’re facing some significant challenges in the housing sector at the moment that can’t be solved by providing a cash boost to buyers. We’ve seen in recent times an array of new grants at both federal and state levels and while that’s great in theory, it’s brought forward high demand on the cost of building supplies and access to tradespeople. Whilst it is great to support first-home buyer initiatives towards home ownership, at a time when the RBA is doing its best to tame inflation, we question whether now is the right time for more demand-side stimulus. We are in a situation where Queensland is at the bottom of the ladder nationally when it comes to rates of home ownership and is at the top of the scale when it comes to building costs – and that’s what has got to turn around.”

“To make a lasting difference, the government’s focus needs to be on addressing supply-side issues as well as informing first-home buyers that the grant has its limitations. If you’re a first-home buyer who is buying or building a brand-new home and the expense ends up over $750k, they will not qualify for any aspect of the grant. Additionally, you cannot rent out rooms to friends or family to obtain additional income. It (the grant) also doesn’t extend to established housing, which is a wasted opportunity when there is established stock in regional markets that are generally more affordable.”

Pickworth, C. (2023). Granting doubt: double take for first homeowners. MyCityLogan. https://mycitylogan.com.au/granting-doubt-double-take-for-first-home-owners/