Tasmania Government to chip in $200k for your first home

A proposed housing program will mean first home buyers with as little as 2% deposit can get up to $200,000 help from the government. HERE’S HOW + FULL LIST OF SUPPORT >>

A suite of state government reforms aimed at boosting housing affordability has been welcomed by industry groups and TasCOSS.

Premier Peter Gutwein announced a suite of changes to housing policy including boosts to the First Home Owners Grants, First Homeowner stamp duty concession, Ancillary Dwelling Grant Program and Housing Market Entry Program in parliament on Tuesday.

Property Council of Australia Tasmania Executive Director Rebecca Ellston said the reforms were welcome.

“The new policies will go a long way to substantially increase the supply of social and affordable housing in an enduring and sustainable way,” she said.

“Simplifying the rezoning process, and the implementation of an Apartment Code are reforms that the Property Council has advocated for over many years and will help to create the right settings to boost supply.

“The Government’s introduction of this approach demonstrates a government looking at new ways to tackle a complex issue across Australia and is widely welcomed by industry.

TasCOSS CEO Ms Adrienne Picone said the government’s pledge of 10,000 new dwellings by 2032 was welcome news.

Rebecca Ellston from the Property Council. Picture: Eddie Safarik.

“We know that based on current demand projections, we need to be building 1,000 new social homes every year for the next decade,” said Ms Picone.

“To their credit, the Government has answered this call.

“Sufficient supply of safe, affordable housing will ensure Tasmania is rebuilt stronger post-COVID-19.

“The challenge now is to source the workforce and materials required to deliver the homes in a timely manner.

Master Builders Tasmania CEO Matthew Pollock long-term planning was vital and gave certainty to the industry.

“The last two years have seen the commencement of a record number of new homes and the industry is already near its capacity,” he said.

“The Government’s targets are undoubtedly ambitious, but if we work together to create the High Vis Army we will be able to build thousands more homes each year.”

Why the government wants to chip in $200k for your first home

THE state government will take over from “the bank of mum and dad” to help young home buyers achieve their dream of owning a place of their own.

Premier Peter Gutwein has announced major changes to first government schemes which will save buyers tens of thousands of dollars.

The revamped Housing Market Entry Program will mean potential purchasers can buy a home with as little as a two per cent deposit — and the government will kick in up to $200,000 of the purchase price as an equity contribution.

Tas Gov new minister

It would mean an eligible applicant wanting to buy a $500,000 home could do so with a deposit as low as $10,000 and a mortgage of $300,000.

“The government will actually provide people with the opportunity to have the government as an equity partner, in the first home, either build or purchase,” Mr Gutwein said.

“It’s a fantastic way of getting people to be able to take that first step on the property ladder. “In effect, it’s like the Bank of Mum and Dad, almost providing people with an increased amount of funding to get into that first home.

“It will enable people with a small deposit to have a smaller loan to pay and therefore get off the rental roundabout.”

The scheme — an expansion of the existing Home Share Tasmania policy — will commence by July 1.

The government has also announced an increase in the threshold for all stamp duty and first homeowner grants to $600,000.

The stamp duty savings on a $600,000 property will amount to around $10,000. Those changes will be backdated to January 1.

And the $30,000 First Home Owner Grant is now extended for another year to July 2023.

The government has also doubled its popular cash for granny flats scheme – formally known

as the Ancillary Dwellings program – from 250 to 500 dwellings at a cost of $2.5m.

And land tax cuts worth $220m announced by the Premier earlier in the week will be in place from July 1.

Minister for State Development, Construction and Housing Michael Ferguson was at the Hobart Showgrounds on Wednesday to sign off a $42m redevelopment.

He said the government wanted to ease the housing affordability crisis, particularly for young buyers.

Michael Ferguson MP Photo: Linda Higginson

“For people who want to aspire to get into their first home perhaps, in some cases, people who are currently renting we’ll be dropping the deposit requirement, down to two per cent, we’ll be increasing the amount that the state government is prepared to co-invest with you as a homeowner, to as high as $200,000 or 40 per cent of the cost of that house.

“What this means is that people who have felt ‘we can’t get into the housing market, it’s just not affordable for us’, we’re making it as easy as we possibly can to have the state government actually come in and help you borrow those funds.”

Mr Ferguson said the strong growth in housing was a reflection of the state’s buoyant economy.

“Tasmanians do need to see more housing, it’s because our state’s growing,” he said.

“Gone are the days where young people were fleeing the state and families needing to leave Tasmania to get jobs in other states.

“In actual fact, people are staying here, having more confidence to call Tasmania their home, but also returning Tasmanians – people are coming back.”

For further information about HomeShare and government announcements contact Tassie Home Loans on 1800 687 377.

Schemes to help homebuyers

First Home Owners Grants: $30,000 towards the purchase or construction of a new home.

First Homeowner stamp duty concession: 50% discount on properties of up to $600,000.

Ancillary Dwelling Grant Program: Grants of $10,000 to build rental accommodation such as granny flats.

Housing Market Entry Program: 2% deposit and a contribution of up to $200,000 in equity.

Rental Incentive Scheme: Payment to owners of up to $9900 per annum to keep rents low.

Plus: Plans to help release up to 60,000 additional blocks of land, $220m in land tax cuts, doubling the Residential Land Rebate from $15m to $30m.

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