Here’s a test for you – get on to your mobile and try and find a home and land package in Brisbane for less than $750,000.

It shouldn’t take long – because there aren’t many, if any. When you go a bit further out to Logan, Ipswich, Moreton Bay or pockets of the Sunshine Coast you may have some luck, but even then it’s a challenge.

Yet the Queensland State Government’s $30,000 First Home Owner Grant only applies to new builds that cost up to $750,000.

And to put that in perspective the median price for a house in Brisbane recently tipped over to the million dollar mark.

It’s prompted many in the building industry to call for the cap to be lifted to give all Queenslanders first home buyers the opportunity to get into the market.

Avia Homes Managing Director Tom Egan said the cap forces buyers further out to get properties eligible for the grant, reducing properties locals can buy.

“This all comes back to the buyers that need to fit in that threshold are moving out further to compete with the other buyers, even though they can service a much higher loan,” Mr Egan said.

“The State Government needs to know that by doing this (raising the cap), you’re alleviating all the pressure on the $750,000 further out where local buyers can’t afford to buy in the city, but the buyers in the city can, they just don’t fit the threshold.

“So, they’ll move further out, creating way more pressure.”

Low Deposit Homes Director, Chaice Paterson has called for the cap to be abolished, or for it to be raised to at least a million dollars to deliver meaningful change.

“By increasing that cap you open up more areas and spread the pool of buyers over a far greater area, which increases housing supply,” Mr Paterson said.

“This is the critical component because it’s the biggest issue that first home buyers face, because there’s such limited supply on market, everyone’s competing for the exact same price points.

“That creates a pincer effect, it pushes it up like a volcano and erupts in terms of the price.“

“So, what we’ve been talking to the Premier about is spreading that pool of buyers back out over a far greater area to provide more affordable housing for those who need it.

“And those who can afford the more expensive properties would be able to buy those expensive properties and still be eligible for all the different grants and incentives for first home buyers.” 

Treasurer and Minister for Home Ownership David Janetzki was contacted for comment by The Good Builder regarding any plans to review the cap on the First Home Owner Grant.

The Treasurer wouldn’t be drawn on that issue, but referred to the state government’s introduction of a bill to Queensland Parliament to abolish stamp duty on new builds and land for eligible first-home buyers. 

“Abolishing stamp duty on new builds for first homebuyers will pave the way for thousands of young Queenslanders to save on upfront transaction costs, easing the pressure of home ownership, while also incentivising a greater supply of housing,” Mr Janetzki said.

Author: The Good Builder

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