Budget brings good news for aspiring first home buyers

The recent state budget wasn’t all doom and gloom, with the Real Estate Institute of Queensland (REIQ) applauding decisions involving 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 1000 aspiring first homeowners across Queensland with as little as 2% savings to “close the deposit gap”, offering up to 30% equity for new homes and up to 25% 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 state-wide property value cap of $1 million, the scheme reflects modern property prices across Queensland and makes it the most attractive in the nation. 

“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.” 

On the supply side, the REIQ applauds the move to streamline Queensland Revenue’s ex gratia relief process for foreign-owned housing projects that deliver economic or community benefits. 

“When housing projects meet the public interest test, whether by enhancing community outcomes or increasing much-needed housing stock – then relief from punitive surcharges should be a straightforward and swift process,” Ms Mercorella said. “Foreign entities cop extra surcharges despite being instrumental in delivering new housing supply. Until now, ex gratia relief has been available, but the process has been slow and uncertain, making it unworkable for many projects. 

“The budget commitment to reform and fast-track this relief is an encouraging step that will drive capital to Queensland and help get more housing projects off the ground.” 

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

“The wins are welcome – however, we caution that the supply crisis remains Queensland’s most pressing housing challenge,” Ms Mercorella said. “We have 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.”