What Government Assistance Is Available To Queensland Property Buyers?
As we all know by now, housing affordability is a significant issue around Australia, exacerbated by huge price rises over the past few years.
While the housing market is slowing, Brisbane prices were still up 25.6 per cent over the 12 months to the end of June, according to the latest data from CoreLogic. At $784,126 , the city’s median dwelling value is still relatively affordable compared to thelikes of Sydney at $1,110,660, for example, but for those trying to get into the market, any financial assistance they can get is a plus.
Here are the significant incentives on offer from the Federal and State Governments for those looking to buy a home – not just first home buyers – in the Sunshine State:
This shared equity scheme is available to any buyer who doesn’t currently own a home – not just first home buyers – it came into effect on July 1 2022. The way it works is that the Federal Government contributes equity so buyers can have a
smaller deposit than usual to buy a home and avoid paying lenders’ mortgage insurance (LMI), but the buyer must contribute at least two per cent of the purchase price.
The government’s equity contribution is limited to a maximum of 40 per cent for a new home and 30 per cent for an existing home.
Individuals earning $90,000 or less or couples earning $120,000 or less can access the scheme. Up to 10,000 places will be available each year. Homebuyers can buy out the government’s equity stake during ownership or pay it back when they sell.
Just be aware that once you start earning above the maximum income threshold, you will have to buy out the government’s stake within two years; if you cannot do this, you will be forced to sell the home.
As well as income caps, property purchase price caps have been established for the scheme, which varies between capital cities, regional centres and the rest of the states.
Available for first home buyers, this initiative allows eligible applicants to purchase a first home with as little as a five per cent deposit. The Federal Government guarantees the difference between the deposit and a 20 per cent deposit required by lenders, which means LMI (Lenders Mortgage Insurance) doesn’t have to be paid. This scheme has been expanded from July 1, with 35,000 places available each year.
This program is similar to the First Home Guarantee, except it applies to single parents with dependent children who don’t currently own a property. In addition, it requires that they have to provide a minimum deposit of two per cent. From July 1, 2022, 5,000 places will be available each year.
This new guarantee applies to regional homebuyers who haven’t owned a property for at least five years. It will enable eligible applicants to purchase with a minimum five per cent deposit, with the rest guaranteed. It will offer 10,000 places each year from January.
This program essentially allows first home buyers to use their super to save a deposit for a home purchase. It will enable eligible applicants to make contributions to super at a reduced tax rate, which can be withdrawn – along with the earnings – to help buy a home.
First home buyers in Queensland can access the $15,000 First Home Owners Grant. Still, it is only available for newly built home purchases, so you can’t apply for the grant if you buy an
existing home. Buyers are eligible for the assistance if they are building or buying a new house, unit or townhouse for less than $750,000 and intend to live in it. Only one grant is available for each home purchase, rather than for each applicant. Neither of the applicants can have purchased a home in Australia before.
Transfer duty concessions
Depending on the value of the property you are purchasing, there may be some stamp duty savings on offer for home buyers in Queensland.
According to the Queensland State Government, these are the rules:
First homebuyers – For property purchases up to $500,000, zero stamp duty will be paid, equating to a saving of $15,925. In contrast, for purchases between $500,000 and $550,000, concessions may be available.
Other homebuyers – Concessions of up to $7,175 may be available for those buying a home to live in rather than a residential investment property. The concessional rate applies to the first $350,000 of the home’s value, with general rates applying to the balance.
First homebuyers buying vacant land – For vacant land purchases valued at $400,000 or less, first home buyers will pay zero stamp duty, equating to a saving of $7,175.
Do your research
Don’t just assume you can access these financial incentives – do your research and consult experts to ensure you meet the eligibility requirements, of which there can be many.
