FNQ property experts react to Scott Morrison’s first-home buyer proposal

Community housing organisations said Cairns is in the toughest rental market in 25 years and fear the Prime Minister’s proposal for first-home buyers to raid super will inflate housing prices.

CAIRNS property experts and community housing groups have raised concerns about the Prime Minister’s solution to allow access to superannuation for first-home buyers.

Cairns Mortgage Brokers director Roger Ward said he felt the Morrison government’s aim was “unappealing.”

“I see what the government is trying, to swap first-home buyer super assets for equity in their home,” he said.

“The practicalities won’t be attractive to first-home buyers as the super funds can’t be used as the sole deposit and they’ll have to save five per cent of the deposit.

Owner of Cairns Mortgage Brokers Roger Ward said the Morrison Government’s suggestion first home buyers should raid their super will be unappealing and has a sting in the tail. PICTURE: BRENDAN RADKE

“And the sting in the tail is when they sell the property, they have to take the money out of the proceeds for the capital gains and it’s pretty unappealing.”

Rental Revolution working principal Amanda Philips said Cairns is facing the worst rental market in 25 years.

“I‘ve lost 27 propenes off my rent rolls as landlords made good sales to owner-occupiers as people paying top rents realise they can pay less on a mortgage,” she said.

“I’ve heard of super-greedy landlords, none of mine I hasten to say, putting rents up,”

Shelter Housing Action Cairns chief executive Sally Watson said she’s concerned as the perfect storm of low vacancy rates, high rental costs and people without savings mean that the Morrison government’s plan will simply drive up property prices leaving their clients in the lurch.

Shelter Housing Action Cairns executive director Sally Watson is alarmed by the low rental vacancy options for low income earners in the region. Picture: Supplied

“The worst result I fear is people raiding their super to buy, because this will simply push up prices,” she said.

“Instead we need to increase the supply of affordable housing, because the housing crises in Cairns is getting progressively worse,.”

Ms Watson said rental vacancies are at 0.06 per cent while rents are up 25 per cent.

“A three-bedroom house was $400 a week in 2021 now it’s $500 a week,” she said.

“If you have a holiday or airbnb, please consider returning it to the long-term market.”

Access Community Housing chief executive Liz Brown, said the housing situation in Cairns is deteriorating.

Record low rental vacancy levels combined with high rents have created the tightest rental market Cairns has experienced in 25 years.

“Increasing numbers of people and families are living in temporary accommodation such as hostels, motels and tents, or even cars,” she said.

“Couch surfing or staying with others, is leading to serious overcrowding issues and more and more people are facing the real prospect of homelessness, that they would never have thought possible.

“As people begin to travel again and relocate for work, the availability of even temporary accommodation is becoming more scarce.”

Originally published as FNQ property experts react to Scott Morrison’s first-home buyer proposal