Finally, Some Common Sense: First Home Buyers Renting Out Rooms

At last, a housing policy that actually makes sense! The Queensland Government’s recent decision to allow first home buyers to rent out rooms without losing their stamp duty concessions is a refreshing step in the right direction.

Why are we so excited? Because we’ve always believed a first home should also be a first investment—and when set up properly, it’s the cornerstone of building long-term wealth. With this new policy, there’s now even more opportunity to make that happen.

Originally proposed by the LNP, this idea was quietly introduced by the Labor government just before the state election but set to expire. Now, the newly elected LNP government has committed to making it a permanent solution. As was shared in this ABC article, this is likely a case of one party “copying the other’s homework,” and while the different parties can squabble over who gets the credit, we’re just happy to see it happening. Allowing first home buyers to rent out rooms without losing their stamp duty concessions is a practical, forward-thinking step toward addressing the housing crisis.

As Mal Cayley says, “Legislation is just an idea put into law. If it doesn’t make sense, it should be changed.”

The housing crisis we’re facing is all about supply—or rather, the lack of it. We simply don’t have enough homes, and too many of the ones we do have don’t suit the needs of today’s population – the missing middle. That’s why we’ve been drawing attention to the concept of right-sizing —creating homes that cater to all demographics and living arrangements, from young families to retirees and everything in between.

As a group that often embraces share housing, young first home buyers are well-suited to renting out rooms. This approach not only helps them manage mortgage repayments but also provides much-needed assistance to the rental market by freeing up the housing supply. It’s a win-win that leverages their lifestyle to tackle two major challenges at once.

This policy ticks a lot of boxes:

• Accessibility: It makes owning a home more affordable by helping first home buyers offset their mortgage with rental income.
• Efficiency: Empty rooms help no one—this puts them to good use.
• Impact: It eases pressure on the rental market, freeing up much-needed housing.

We’ve always said you can’t fix a supply-side issue with demand-side solutions. What we like about this policy is that, unlike demand-side solutions like first home buyer grants, which often fuel competition without fixing the problem, this is a supply-side solution that might actually help our communities. It’s a simple, smart policy that could genuinely make a difference.

We’ve always believed that a first home should be your first investment, and this policy makes it easier for buyers to start building wealth from day one. If you’re already a ‘rentvester’ with us or have children considering their first home, now is the perfect time to talk. Let’s explore how to make the most of these opportunities together.