The State Government should be applauded for seeking to arrest declining housing affordability in the Budget, according to the Real Estate Institute of Queensland (REIQ).
First home buyers will be exempt from stamp duty on homes up to $500,000 from 1 September 2008, while the abolition of mortgage duty has been brought forward six months to 1 July this year.
REIQ managing director Dan Molloy said these initiatives would provide much-needed savings of up to $9,500 for anyone buying their first home.
"With Queensland now the least affordable state in the country, these measures are a sign the State Government is serious about doing its part to address housing affordability," Mr Molloy said.
"As about 80% of house sales in Queensland last year were for less than $500,000, lifting the first home buyer stamp duty threshold to this amount will benefit a significant number of first home buyers who have been struggling to get into the market."
The REIQ also welcomes the reduction of the amount of tax at the land tax threshold and further funding for social housing and the Urban Land Development Authority.
"There is no quick fix solution in addressing housing affordability, but these reforms, coupled with previously announced Federal and State initiatives, are all steps in the right direction," Mr Molloy said.
