While the political parties argue about real estate affordability in the lead up to the Federal Election, the Country Liberal Party and the Labor Party have made first-home buyer assistance a major issue in the NT election.
With the major political parties offering a range of sweeteners, first time buyers could be the big winners when Northern Territorians head to the polls on 27 August, 2016.
While the political parties argue about addressing real estate affordability in the lead up to the Federal Election on 2 July, the Country Liberal Party and the Labor Party have done something about it by making first home buyer assistance a major issue in the NT election.
Any initiatives aimed at first time buyers that will get entry-level property ticking over will have a positive flow-on effect to the upgrader and investor real estate markets, which will be helpful longer-term for values and the broader NT economy.
Under the current Country Liberal Party, a First Home Owner Grant (FHOG) of $26,000 is available to first home buyers who buy or build a new home. In addition, the First Home Owner Discount (FHOD) was introduced to assist first home buyers purchase an established home in the Northern Territory. The FHOD provides a 50% reduction on stamp duty up to a maximum of $10,000, and is available to 30 June 2017.
In response, the Labor Party has promised a $24,000 stamp duty concession for first home buyers securing existing houses worth up to $650,000. In addition to this stamp duty relief for the next two years, Labor will provide $10,000 to first timers purchasing an existing home to undertake home renovations.
$2,000 of this funding will be made available for household furniture and white goods purchased locally, which has benefits for the real estate market and small business. I guess it’s a case of watch this space, while I’m also well aware that election promises are regularly changed once an opposition transitions to the government benches.
With the NT election still 2 months away, first time buyers could start their research in Darwin’s northern suburbs and Palmerston. We are already seeing more enquiries with Zuccoli in Palmerston attracting plenty of first time interest.
Likewise, an appealing three-bedroom house at 43 Ridgehaven Circuit, Leanyer, in Darwin’s north, recently sold under the hammer for $665,000, which was $15,000 above reserve. A young couple, who are first home buyers, scored the property from another young couple.
Leanyer is a sought after first home buyer market, located in close proximity to the Darwin CBD, the beach, a major waterpark and fashionable Casuarina Square, Darwin’s biggest retail precinct. First home buyers would do well to consider other northern suburbs such as Malak and Karama, where entry-level prices start from around $430,000 for an older 3-bedroom brick home. These suburbs have never been as popular as the likes of Leanyer in the past, but with some gentrification due to their excellent locations, first home buyers might achieve some decent long growth by buying into Malak and Karama.