Territorians will have to wait until next week for housing plan details

Industry has welcomed the Government’s new housing plan, but the detail behind the measure won’t be released until next week. Read what it means.

Potential home buyers and industry will have to wait until next week for the fine print around the Northern Territory Government’s new HomeGrown Territory grants program.

A centrepiece of the CLP’s election campaign, chief minister Lia Finocchiaro and Treasurer Bill Yan announced applications for the scheme would open on October 1, with supporting legislation to be introduced into parliament when sittings resume on October 15.

Industry backed the scheme following the announcement, but said details around when the grants were paid would be crucial to the scheme’s success or otherwise.

Shelly Lay from Simple Finance Solutions, a Top End mortgage brokerage, said the announcement had “motivated” Territorians to look at building a home, particularly first home buyers hoping to enter the housing market.

She said it would be likely most prospective home buyers would wait until after Tuesday before signing home build or purchase contracts.

Shellie Lay from Simple Finance Solutions.

She said key to its success would be the stage of the build process the grant was paid.

“We’re excited this is on offer, but we need more clarification on how this will be paid and whether lenders will allow it to be used at the beginning of the loan application process or whether it will be just a reduction at the end of the loan,” Ms Lay said.

“If the grant is not paid until after settlement it won’t help anybody’s borrowing capacity.

“If somebody had a $20,000 deposit and wanted to use the $50,000 grant to complete the purchase, if it doesn’t come until after settlement they won’t be able to complete the transaction and it won’t have the intended effect which is to boost people’s capacity to buy.”

An NT Government spokesman said terms and conditions around the scheme would be released when applications opened on Tuesday.

Welcoming the package, Property Council NT chief executive Ruth Palmer said it was important the scheme promoted growth in existing suburbs as well as new developments.

“One of the hardest things for people right now is saving enough for a deposit, especially when they’re already paying rent and dealing with rising costs,” Ms Palmer said.

NT Chamber of Commerce chief executive Greg Ireland.

“It’s not just about building new homes. We need to focus on revitalising urban areas that already have services and activity centres, ensuring we don’t just draw people out of established suburbs. There needs to be a balanced approach to support both new builds and existing stock.”

NT Chamber of Commerce chief executive Greg Ireland said the package had been eagerly anticipated since its announcement early in the election campaign.

“It was broader than the subsequent offer made by Labor in terms of it being applicable to people from interstate and I think it sits well with business in terms of the recruitment challenges and retention of staff,” he said.
“The more people in the Territory in home ownership, the more anchors you put into the community and the longer they are likely to stay, particularly when you have so many skills you’re trying to recruit for.”

Acting HIA NT executive director Phil Vaughan welcomed the grants.

“It’s something talked about and planned for,” he said.

“The NT home building industry has been in the doldrums for some time.”