Tasmania

First home builders see real value in boost

first home builders

The Tasmanian Government’s recent announcement that it will extend the $20,000 grant to first home owners has been welcomed by HIA.

“It is a positive scheme that addresses the rising problem of housing affordability and will help Tasmanians achieve the Aussie dream of owning their own home faster,” said HIA Executive Director, Rick Sassin.

“HIA figures show that the typical stamp duty bill on homes in Tasmania is almost $11,000. We do feel that the inefficient collection of stamp duty needs to be addressed and do support a more equitable land tax. However, with this obstacle in mind, buying a house is a pipe dream for so many people in Tasmania, not to mention the rate of new hosues being built mean prices are going up rapidly,” said Mr Sassin.

“We reject any comments made that this scheme is a waste of money. It is our experience and the feedback from our industry and the community that it is a very beneficial scheme which really does help people build their first home,” said Mr Sassi.

“Any assertions that this boost enables builders to inflate their prices are without evidence. Our observations show that the cost of house building has tracked closely against CPI over the last 10 years. We are in a competitive environment with builders competing on building cost per square meterage. This is not about spending more money on houses, it is about getting into a house that is affordable,” added Mr Sassin.

“It is pleasing to see our industry working tirelessly to facilitate first home builders by providing competitive quotations. It is our experience that builders in Tasmania are committed to assisting the process to help people into their first home, and approximately 50% of their enquiries are generated by the first home builder market,” noted Mr Sassin.

“It is feedback from many first home builders that whilst they pass the eligibility test with banking institutions and are able to service a mortgage based on previous rental payment history, they are falling short by the deposit,” said Mr Sassin.

“We are in a very positive environment regarding new dwelling approvals. During April 2018 Tasmania recorded an increase of 15.2 per cent compared to a year earlier. This increase can be partly attributed to the continued stream of first home builders,” added Mr Sassin.

“It is important to note that the first home builders market is constantly growing and changing, so we need to provide the ongoing stimulus for the longer term success of home ownership for Tasmanians,” concluded Mr Sassin.

Source: HIA