Earlier this month the Territory Government handed down its 2014–15 Budget. Several changes regarding home ownership were announced and it is important to understand how the changes may impact on your hopes of buying property in the Darwin region. We chat to local property developer and Urbex General Manager Wayne Rex to find out what was announced.
What changes has the Government made?
Broadly speaking the 2014–15 Budget outlined changes to fast-track land releases and development, and help people into the property market. The Government reaffirmed its commitment to help low to middle income earners purchase property, with more than four loan options including a Subsidised Interest Rate Loan, Low Deposit Loan, Off The Plan Deposit Loan and Fee Assistance Loan. Several changes to the First Home Owner Grant were also announced.
How do the changes affect First Home Buyers?
First home buyers were the big winners in this year’s budget. The First Home Owner Grant received a $1,000 boost, up from $25,000 to $26,000, and the $600,000 cap on eligible homes or house and land packages was scrapped. The changes, which were effective from 13 May 2014, give first home buyers greater choice when it comes to purchasing a home or building one tailored to their needs. From 1 January 2015, the grant will only be available on new homes or house and land packages. At Urbex, we have a variety of eligible packages at various price points, developed in partnership with local Territory builders, and a team of experienced professionals who can walk you through the process and help you find the land and home of your dreams.
What does this mean for the Darwin property market?
It’s widely believed that the First Home Owner Grant in its previous form inflated prices on established homes and restricted the purchasing power of first home buyers looking to get into the market. As a result, it’s expected that the changes will help stabilise prices across the region and spark a steady stream of construction and development in Palmerston East. All Territorians seeking home ownership will benefit through the increased supply of land within the territory, as greater competition will curb price escalation and furthermore reduce the upward pressure on an undersupplied housing market.