The Real Estate Institute of Queensland (REIQ) will throw its support behind a legislative change that will remove restrictions for homeowners wanting to rent out rooms without risk to their concessions or grants at a public hearing next week.
REIQ CEO Antonia Mercorella said the move to change eligibility requirements to allow homeowners to rent out empty rooms within the first 12 months of purchase without penalty to their concession or grant was the brainchild of the REIQs.
“This initiative is a win-win for both homeowners and renters in Queensland, and we are proud to have instigated this common-sense change,” Ms Mercorella said.
“It aligns with the REIQ’s vision for greater levels of homeownership, which was a central pillar of our election platform and has the dual benefit of helping to alleviate both financial and rental accessibility pressures.
“By allowing homeowners to rent out spare rooms, this initiative not only supports first homeowners in managing their mortgage costs but also taps new housing options for renters.
“The REIQ advocated for the removal of these restrictions as part of its election policy recommendations and is pleased to see the Government adopting our policy, which will help address housing affordability and rental supply challenges.
“While we acknowledge that this measure alone is no silver bullet solution, it is an example of the type of innovative, individual actions that collectively make a material impact on the broader housing market.
“On average, 21,000 first home buyers each year were previously restricted from leasing out part of their property in the first year and even a modest 3-5% of these homes being rented out could provide a meaningful boost to the rental market.
“It’s good to see the State Government delivering on their commitment to lift these restrictions and we look forward to seeing more of their housing plan come to fruition.”
Ms Mercorella said the REIQ also sees an opportunity to expand this initiative further to unlock additional rooms for rent in existing housing stock throughout Queensland.
“We would encourage the State Government to consider expanding this initiative to incentivise homeowners in underutilised properties, such as empty nesters or those with more space than they need, to rent out these unused rooms,” she said.
She said when it came to encouraging people to rent out rooms within their homes, community education was important to allay any concerns.
“To ensure the success of this measure, we must provide clear guidance and resources to homeowners, so they understand the tax implications, insurance considerations and contractual agreements involved in renting out a room,” Ms Mercorella said.
“We understand that homeowners are concerned about potential capital gains tax and land tax implications, and we encourage the Government to explore the possibility of exemptions or other measures to ease these concerns in these circumstances and boost participation.”
The REIQ will speak to its Submission regarding the Revenue Legislation Amendment Bill 2024, at a public hearing to the State Development, Infrastructure and Works Committee on Thursday 23 January 2025.
