Previously, buyers who received stamp duty concessions or grants from the Queensland government were unable to rent out a room in the property for the first year of ownership.
The Queensland Treasurer, David Janetzki, has announced that the government will seek to change that rule with legislation set to be introduced in Parliament this week.
Under the current legislation, first home buyers who access state grants or concessions to defray the cost of stamp duty from a property purchase run the risk of losing that government help if they seek to leverage rooms in the property on the rental market.
The rule change is expected to benefit up to 20,000 Queenslanders who take advantage of the program every year. It also has the potential to make the scheme more attractive, with first home buyers able to factor in rental returns to their financial equation for buying a home.
The buyer must still live the in the property for at least one year, but they may now do so with a roommate who is paying rent.
Queensland Premier David Crisafulli, who formed a government following the state election at the end of October, included this measure in his “100-day plan” of priorities in the first months of governance.
Janetzki said he believes the move showed how the government was prioritising home affordability and supply.
“The Crisafulli government is making it easier for young Queenslanders to get into their first home, by permanently removing the restrictions that prevent first buyers from renting out a room in the first year.
“This helps make home ownership more affordable, helping young Queenslanders to get their foot on the property ladder,” Janetzki said.
The Real Estate Institute of Queensland (REIQ) welcomed the measure, with REIQ acting CEO Kat Beavon calling it a “common-sense measure that delivers wins for both buyers and renters”.
“It not only encourages home ownership and eases the financial strain of high purchase prices and interest rates, but also addresses the urgent need for rental supply in Queensland’s tight housing market,” she explained.
“While no single measure can solve the housing crisis, this is one lever we can and should pull to offer relief,” Beavon said.
The Queensland government is also set to expand its stamp duty concession program, with Crisafulli committing to waive the tax on all first home buyer purchases of new builds.
*This post was originally published on https://www.realestatebusiness.com.au/property-management/29164-qld-removes-restrictions-on-first-home-buyers-renting-out-rooms?utm_source=Real%20Estate%20Business&utm_campaign=09_12_2024&utm_medium=email&utm_content=Appraisal&utm_emailID=ab130c69c5126a6448abab88bd0325ccd190f8840be3449e1de1fda03c878c2b
