100 more suburbs within buying power of singles, couples on July 1

In the biggest rise to borrowing power since pandemic interest rates flatlined, stage 3 tax cuts are set to open up 100 more suburbs for singles and couples in Queensland. SEE WHERE

Queenslanders are set to receive their biggest boost to homebuying power since the pandemic interest rates crash, as stage 3 tax cuts that begin July 1 add as much as a $38,000 to buying power.

Canstar analysis of the impact of Labor’s July 1 tax cuts on purchasing power show increases of as much as $38,000 for a working couple - opening up more than 100 more suburbs for buyers, several of which are inside the Greater Brisbane region such as Meadowbrook, Bundamba, Kingston and Russell Island.

MORE: Foreign buyers set for double digit fall after tax hike

Tax office reveals crackdown on $1.2b in dodgy landlord claims

Queenslanders are set to see borrowing power gains off stage 3 tax cuts that could get them within the median dwelling price of over 100 more suburbs.

A single buyer on the average Queensland wage of $95,924 in Greater Brisbane will from July 1 see a $20,000 rise in purchasing power to $470,000 off stage 3 tax cuts, Canstar found, rising to a $28,750 boost to $763,750 for a couple with one partner fulltime and one part-time, with the biggest gain of $38,000 to be seen by fulltime working couples - with their credit limit lifting to $1,085,000.

Analysis of the data alongside PropTrack median dwelling prices, shows the average single wage earner would have a total 223 Queensland suburbs open to them post July 1, rising to 375 if they pack a 20 per cent deposit when approaching lenders.

For singles, that’s an additional 44 suburbs compared to pre-July 1, with Centenary Heights, Toowoomba now at the top of their price bracket, houses opening up in Millbank and Wide Bay, as well as units in Greater Brisbane suburbs Yarrabilba, Brendale and Bald Hills.

For couples with 1.5 average incomes, 46 more suburbs open up come July 1 - bringing the total in their price range to 950, with new additions being houses in Ipswich’s Camira and White Rock, Brisbane’s Deagon and Clontarf, Pimpama on the Gold Coast and Baringa on the Sunshine Coast.

Double income families unlock 16 more suburbs for a total of 1216 where median prices fall within their million-dollar purchasing power. Fifteen of those new additions were for houses in South East Queensland including Mount Crosby, Kureelpa, Carrara, Carina, Samford Village, Sunnybank Hills, Varsity Lakes, Paradise Point and Tewantin.

But while the federal stage 3 tax cuts are a welcome relief, experts warn mortgage stress could strip most of the gains if buyers did not seek out the best interest rates possible - with even two average incomes still not sufficient to break into many capital city suburbs.

Canstar expert Steve Mickenbecker said the increases were “modest” compared to recent surges in property prices, but they showed just how impossible it had become to buy a home as a single person and even a couple across capital cities.

Canstar's group executive financial services, Steve Mickenbecker

He said $470,000 in Queensland “still gives you a foothold in the market but it’s not giving you much borrowing power”.

“You’re really going to be limited to outer suburbs and home units if you’re single, so you might want to do something a bit more creative like the government shared equity scheme.”

He said any gains in borrowing power had to measured against mortgage stress - which has the power to erode all gains unless buyers make a concerted effort to seek out the lowest rates possible.

“I think the rubber hits the road when you overlay median prices and see how many new suburbs the tax cuts might open up, in particular for couples on two average incomes.”

Double income families unlock 16 more suburbs for a total of 1216 where median prices fall within their million-dollar purchasing power. Fifteen of those new additions were for houses in South East Queensland including Mount Crosby, Kureelpa, Carrara, Carina, Samford Village, Sunnybank Hills, Varsity Lakes, Paradise Point and Tewantin.

SEE THE LATEST PROPTRACK HOME PRICE INDEX

FOLLOW SOPHIE FOSTER

Originally published as 100 more suburbs within buying power of singles, couples on July 1