Mixed reviews over ‘nation-leading’ home buyer scheme
Seeking to address home ownership pressures, the state government has been forced to defend a “nation-leading” scheme unveiled in the budget.
The Queensland government has defended its “nation-leading” home ownership scheme amid concerns it will lead to more mortgage stress.
Treasurer David Janetzki highlighted the “boost to buy” plan when he handed down the first Queensland budget under a Liberal National government since 2014.
It featured $8.1 billion in housing funding that included what was described as the country’s most generous shared equity scheme.
Janetzki promised 30 per cent equity in new builds and 25 per cent in existing homes of up to $1 million for 1000 Queenslanders.
The scheme will cost $165 million over the next two years and applies to singles earning up to $150,000 and couples up to $225,000.
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Janetzki said the move came after concerns that a generation of young people were giving up on the dream of home ownership.
“We’re trying to send a message of supply and of hope for younger generations,” he said.
However, the treasurer was forced to defend the scheme amid fears participants may still experience significant mortgage stress.
Brisbane’s median house price officially surpassed the $1 million mark in January.
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“We make no apologies for being so aspirational for aspirational Queenslanders,” Janetzki said.
“My view is, a thousand people, that’s what we need to drive this program. I don’t accept that it won’t get more people into homes.”
The Real Estate Institute of Queensland welcomed the scheme, calling it a “smart, timely step to match market conditions”.
The Queensland Council of Social Services said measures that improved home ownership were positive, but believed the scheme could be targeted better.
“What we would like to see is that it would be targeted to people who are the least likely to be able to do it without government support,” QCOSS chief executive Aimee McVeigh said.
“It could be a really significant change for those families and generate intergenerational wealth, which is really important when you think about how we lift people out of poverty or provide people with financial security into the future.”
Labor’s Shannon Fentiman expressed support for the shared-equity scheme but believed it would only assist a small number of Queenslanders.
The LNP government’s budget forecasts an $8.6 billion deficit in 2025/26 before dipping to a $1 billion deficit in 2028/29.
