Homebuyers and property owners in Queensland stand to benefit from the plans of the federal government to support housing, but the Real Estate Institute of Queensland (REIQ) said more needs to be done in order to ensure that these support measures reach a wider population.
One of the welcome developments was the extension of the First Home Super Saver (FHSS) scheme, which will allow first-home buyers to release up to $50,000 of their voluntary super contributions to purchase a home. REIQ also commended the provision of 10,000 extra slots for the First Home Loan Deposit Scheme, which will help buyers break into the market with as little as a 5% mortgage deposit.
However, Antonia Mercorella, CEO of the REIQ, said the scheme still restricts the choices of potential applicants to newly constructed homes.
"By doing so, it fails to recognise the entry barriers for many first-home buyers, particularly for young families whom new construction is not an affordable or practical option over established housing options,” Mercorella said.
Figures from the Australian Bureau of Statistics show that the cost of new construction has risen at a more substantial rate than the value established housing. Over the period ranging from 1995 to 2018, the costs of new construction have risen by 220.3% versus the 113.95% gains in the costs of established housing.
Mercorella also believes that the proposed Family Home Guarantee will only be able to help few single parents.
The Family Home Guarantee works similarly to the FHLDS. It aims to help single parents with dependants who earn up to $125,000 access housing with just a 2% deposit. The federal government allotted 10,000 slots for the scheme, which will be filled in four years.
Mercorella said the limited spots for the scheme indicate that it will only work for about 1.5% of the market.
"When divvied up between the states and territories, it becomes much clearer that these kinds of budgetary measures must go further to have any meaningful impact," she said.