Federal Government produces carrot for Darwin property first timers

Leading local real estate firm, Raine & Horne Darwin continues to buck broader market trends by doubling the number of sales it recorded in May 2019 compared to the same month last year.

 

“Our sales are being bolstered by first home buyers who rushed to take advantage of Australia’s best subsidies for first-time buyers,” said Glenn Grantham, General Manager, Raine & Horne Darwin.

 

On the 7 May 2019, the first homeowners’ grant was slashed from $26,000 to $10,000 for those building or buying a new home. While first-timers will still be able to claim up to $18,601 in stamp duty concession as part of the Territory Home Owner Discount, “the smaller grant means they will have less money to put towards a deposit for a new home, which affects their loan affordability,” Glenn said. The $20,000 Build Bonus is still in place.

 

In a rush to meet the deadline, Raine & Horne Darwin secured in the first week of May the sale of 15 land packages at the Aspire development in Zuccoli, a new suburb of Palmerston. “There was a rush earlier in the month to take advantage of the generous grant and that demand has settled now.” 

 

Meanwhile, the impact that PM Scott Morrison’s First Home Loan Deposit Scheme will have in keeping the first home buyers’ market rolling in Darwin remains to be seen, said Glenn. The First Home Loan Deposit Scheme announced in the last week of the Federal Election campaign by the government and backed by the Opposition, is aimed at first-time buyers struggling to piece together a 20% deposit. In turn, they will be allowed to apply for a home loan with a deposit of just 5%. Moreover, first time buyers won’t be required to pay Lender’s Mortgage Insurance, which adds many thousands of dollars to an average first loan.

 

The scheme is available to a single home buyer earning up to $125,000 a year or a couple earning a cumulative $200,000.

 

“Our local scheme was better than the Federal Government’s scheme, and since changing to a mix of grant and stamp duty exemption is still very good,” said Glenn. “The Federal scheme will be a positive for entry-level markets in Darwin, and along with the much-anticipated interest rate cut, the outlook is good for first home buyers considering a property in Darwin.”