$30,000 leg up in Tasmania offered to first time buyers

With first home buyer grants across the country now redirected towards new homes, Tasmania has taken it a step further than any other state or territory, offering $30,000 to quickly push up new home building activity.

With RP Data citing the median dwelling price in Hobart at $300,000, this is a subtantial portion on offer from the government, having previously been half this amount at $15,000.

Premier Lara Giddings, in announcing the new stimulus at a jobs forum, said that it is effective immediately, after a slower take up than expected of the previous grant of $8,000 under the First Home Builder Boost plus the $7,000 inital grant. The new incentive is $23,000 plus the $7,000 initial grant.

“The average cost of constructing a first home in Tasmania was around $234,000 in 2012-13 and this grant will make building an even more attractive proposition," Giddings said.

“Builders have told us that there has been a lot of interest from people wanting to build their first home, but they needed more time to accumulate a deposit," she said.

“That is why we have taken the decision to turbo-charge the incentive for people to build their first home, effectively paying the cost of a deposit on an average new home build."

She pointed to record low interest rates, affordable house and land packages, and a ramped up incentive as pointing to no better time to buy.

“I would encourage anyone who has been thinking about building or even buying a new home off the plan to think seriously about taking advantage of this offer," she said.

“Tasmania already offers a lifestyle that is second to none and it is now amongst the cheapest places in the country to realise the great Australian dream of building a new home," she continued.

The scheme, starting on November 7, will continue through until December 2014 with costs coming from the $24.5 million Tasmanian Jobs Package.

Since the announcement, Giddings has said that strong interest has already been reported.

Today, in a release regarding ABS figures around housing finance on the rise for first home buyers, she said this should further underpin the increase.

“It is pleasing to see an 18% annual increase the number of loans to first home buyers, proving that there is no better place in Australia to realise the dream of home ownership," Giddings said.

“The supercharged $30,000 First Home Builders Boost will give a further adrenalin shot to the property sector while creating much needed jobs and activity in the building industry.”