Experts call to increase the price cap for first home buyers.

The federal government needs to act now because new data shows that people are effectively locked out of purchasing a house in over 500 Queensland suburbs.

Under the expanded Home Guarantee Scheme, qualified first-time buyers can purchase their first home with just a 5 per cent deposit. With the government guaranteeing the other 15 per cent, removing the need for Lenders Mortgage Insurance (LMI).

According to CoreLogic's calculation, 39.8 per cent of dwellings – houses and units – would qualify for the scheme in Queensland.

PropTrack economist Angus Moore stated that the scheme would help some first-home buyers buy sooner in the short term, but it is not an ideal long-term solution to housing affordability.
"The only long-term solution to tackling housing affordability is on the supply-side – we have to build more homes," he said.
He stated that prices would still increase, and first home buyers would continue to be priced out of the market.

Hope is not lost. According to the report author, PRD chief economist Dr. Diaswati Mardiasmo, the PRD Roaring Regions Report revealed its top 10 locations nationally where housing remained affordable, and capital growth showed positive signs.

In Queensland, the Whitsundays, Mackay and Toowoomba regions were explicitly highlighted, but there were plenty more contenders.

"Not only have our regions proved to be extremely resilient throughout Covid-19, they give us hope when it comes to housing affordability," Dr. Mardiasmo said.

Learn more by reading the full news here: https://www.realestate.com.au/news/it-is-slim-pickings-for-first-home-buyers-in-qlds-hottest-markets/?rsf=syn:news:nca:cm:spa