Wishing for a white picket fence? These grants can help
Cracking the property market just became a little less daunting with a new guide aiming to help first-home buyers understand which government schemes and concessions are available to them.
PRD’s First Home Buyers’ Guide 2022 outlines both state and federal programs and their various conditions, allowing first-home buyers to maximise the benefits they can access.
PRD chief economist Diaswati Mardiasmo said the Qld state government had three separate schemes available for newcomers to the market which, when combined with national grants, provided a higher level of support for Sunshine State buyers compared to other states such as the ACT.
“However at the same time, Qld is the state that is still seeing positive growth, compared to its neighbouring NSW and VIC, which means that prices are still on the rise,” Dr Mardiasmo said.
“With interest rates increasing, a buyer’s borrowing power lessens, however that is not exclusive to first-home buyers — that is felt across the board.”
High property prices and rising interest rates weigh heavily on first-home buyers
Dr Mardiasmo said improving housing affordability ultimately rested on increasing supply.
“Whether it’a unlocking middle-ring land, making it more simple to change land zoning to become residential or mixed residential, less red tape in processing applications, or concessions and incentives to build in order to counteract high labour and material costs,” she said.
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It comes as the Federal Government announced 40,000 housing grants would be available from Friday, with 35,000 places opened for the First Home Guarantee Scheme and 5,000 for the Family Home Guarantee.
Federal Housing Minister Julie Collins said a further 10,000 places were expected to become available when legislation is approved for a regional grant.
“The Albanese Government will also provide targeted support to Australians living in regional areas through a new Regional First Home Buyer Support Scheme,” Ms Collins said.
“This new scheme will join the Home Guarantee Scheme and deliver on a commitment the Albanese Government made before the election.”
From July 1, price caps rise by $100,000 in capital cities and regional centres to reflect strong growth in median prices over the last two years.
PRD chief economist Dr Diaswati Mardiasmo. Picture: Contributed
The Real Estate Institute of Australia (REIA) president Hayden Groves advised first-time buyers to speak to their broker about securing a place.
But Mr Groves said rising interest rates and inflation remained key issues impacting purchasers.
“We have already seen home buyer activity ease off due to renewed investor interest in the market and rising interest rates, but it is great to see this support come online as post-pandemic economic conditions set in,” Mr Groves said.
“The number of loans to first-home buyers was down a whopping 32.8 per cent on what was recorded a year ago, however new loan commitments to this market increased 4.2 per cent in March after two months of decreases.
REIA president Hayden Groves.
“Hopefully these conditions allow the marketplace to stabilise and offer new opportunity for first-time buyers to secure their own slice of the great Australian dream,” he said.
The First Home and Family Home Guarantee schemes combined have helped more than 61,000 Australians purchase their first home.
Eligible first-home buyers can combine national and state grants
NATIONAL FIRST-HOME BUYER SCHEMES
Family Home Guarantee
Eligible single parents can purchase a home with as little as 2 per cent deposit and no LMI.
First Home Guarantee
Purchase a home with a minimum 5 per cent deposit and no LMI. Qld threshold is $700,000 for Brisbane and regional centres including the Gold Coast. Available for new and established properties for single buyers earning under $125,000 or $200,000 for couples.
First Home Super Saver Scheme
Allows release of voluntary superannuation contributions made from 1 July 2017, plus any associated earnings from 1 July 2018. Total withdrawal threshold is $50,000 plus earnings.
Regional First Home Buyer Support Scheme
A loan for buyers wit ha 5 per cent deposit who can afford to purchase a home but can’t obtain private finance approval. Price cap of $600,000 for Gold and Sunshine Coasts, $450,000 other Qld regions.
QLD FIRST-HOME BUYER SCHEMES
First Home Owner Grant
A $15,000 grant for new residential properties priced up to $750,000 for house and land. Available for off-the-plan purchases, new builds, and substantially renovated properties.
First Home Concession
Stamp duty exemption for first-home buyers.
Qld Housing Finance Loan
A loan available with 2 per cent deposit to home buyers who can afford to purchase a home but can’t obtain private finance approval. No LMI. Available to buyers with annual household income under $141,000.
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