Homebuyer hot spots for federal assistance

NEW data shows more than 9000 Queenslanders have bought a home years earlier than planned after taking up federal assistance, with the state now a red hot favourite for interstate migrants too.

First Home Loan Deposit Scheme data for the 2021 financial year (released last week by the National Housing Finance and Investment Corporation), showed Queensland was punching above its population weight.

“Relative to population share, demand for the FHLDS and NHG (New Home Guarantee) was strongest in Queensland, which accounted for 26 per cent of FHLDS guarantees issued and 27 per cent of NHG,” the NHFIC report said. “This compares with Queensland representing 20 per cent of Australia’s population.”

Since January 1, 2020, Queensland residents made up 9000 of more than 33,000 people who were able to buy homes with support of the two federal government initiposit atives.

South East Queensland dominated the Queensland postcode hot spots where guarantees (FHLDS and NHG) were used to get a foot in the door during the 2020/2021 year.

The state’s top postcode was 4306 Ipswich – Inner and Hinterland where 155 guarantees were used, 4207 Gold Coast, Logan and Beaudesert (148), 4350 Toowoomba (124), 4209 Gold Coast – Ormeau and Oxenford (104) and 4305 Ipswich – Inner and Hinterland (97).

NHFIC found the national average distance buyers were moved away from their current residence to buy their first property was 8.4km.

In Greater Brisbane, the majority of those using FHLDS (44.91 per cent) and NHG (56.11 per cent) were buying in a hot zone 15–30km from the CBD.

It found the median property purchase price for those using FHLDS in Greater Brisbane fell by $1,500 in 2020/2021 financial year, but the median deposit paid by the borrower remained at $22,500.

In regional Queensland, the median depaid out by borrowers under FHLDS rose by $700, but buyers were paying a higher median property price by $11,200 compared to 2019/2020.

The new home guarantee – which was accessed to buy 820 homes in Greater Brisbane – saw a median property price of $486,500 with a $33,000 deposit, while in regional Queensland it was used to buy 492 homes with a median price of $454,800 and $33,400 deposit.

Almost 58 per cent of all buyers under the schemes were aged under 30, according to NHFIC, with nurses and teachers making up 70 per cent of about 6000 key workers that accessed the guarantees.

Surprisingly, the debt-to-income ratio for FHBs dropped slightly despite surging property prices, sitting at 4.78 in 2020–21 compared to 4.92 in 2019–20.

NHFIC said home buyers were able to bring their purchase forward by an average of four years with FHLDS, and 4.5 years with NHG.