The 'Boost to Buy' scheme will mean the Queensland Government makes a contribution of up to 30% for new builds and 25% for existing homes.

Homebuyers need only front up to the proposition with a 2% deposit. 

It will likely work similarly to the Federal 'Help to Buy' shared equity scheme, where participants buy out the Government over time, or when the property is sold.

Queensland Premier David Crisafulli said it will be a "nation leading" way to reduce the deposit gap for first home buyers.

"Queenslanders shouldn't be locked out of buying a home because they don't have the bank of mum and dad," he wrote on social media.

Who will be eligible?

It looks like the property price cap (you can't participate if you're buying a more expensive property) will be $1 million.

The latest on Help to Buy is the price cap in Brisbane and other regional centres will also be $1 million and $700,000 for the rest of Queensland.

However, Help to Buy could mean a more significant equity contribution - 30% for existing homes and 40% for newly built properties.

There are also income caps - individuals can participate if they earn $150,000 or less which is significantly above Help to Buy, capped at $100,000.

For couples, reporting suggests the maximum combined income will be $225,000, which is again well above Help to Buy (combined max income of $160,000).

Once both schemes are up and running, eligible Queenslanders might be able to choose between the two.

There will be approximately 2,000 places for Queenslanders on Help to Buy each year until 2029, while last year it was suggested there would only be 1,000 spots for Boost to Buy.

Queenslanders will be able to register their interest in Boost to Buy from 1 July.

What else is in the Queensland Budget for homebuyers?

Mr Crisafulli also announced his government will extend the current Queensland First Home Owner Grant (FHOG).

This is a $30,000 grant that first home buyers can use towards either buying or building a new home, or in some cases substantially renovating an existing property.

The FHOG also has a price cap - $750,000 - with no indications that this will be altered.

Are shared equity schemes a good thing?

The Help to Buy shared equity scheme has borne plenty of criticism since it was announced - mostly from the federal opposition.

Then Shadow Housing Minister Michael Sukkar told the Savings Tip Jar podcast in late 2023 these schemes were something only a "small number" of Australians would be interested in.

"History tells us most Australians don't view [co-owning a home with the government] as something they aspire to," he told the podcast.

There are also concerns this is yet another predominantly demand side policy that will fail to properly address the supply issues many feel are the root cause of why it's so difficult to buy.

The Federal Labor Government is still going with its ambitious plan to build 1.2 million new homes by 2030, but all estimates at the moment suggest this is well behind schedule.

Nonetheless, Mr Crisafulli seems confident policies like Boost to Buy will increase home ownership rates in Queensland.

"For years Queensland has been lagging at the bottom of the home ownership ladder, but by securing our housing foundations, we will lift Queensland to the top of this ladder within a decade," he said last year.

Picture by Alice Duffield on Unsplash

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