For many Tasmanians, the dream of owning a home is becoming a reality thanks to first homebuyer schemes. But here's the thing: these schemes are about to expire on June 30, and it's unclear what will happen next.
Alison McNeice's story is a testament to the impact of these schemes. As a wildlife carer and first-time home owner, she's been able to provide a safe haven for rescued birds, without the worry of landlords breathing down her neck. "It's fantastic," she says, "because I've been able to take some birds on and help them get homed and have the space to do that."
But getting to this point wasn't easy. It took McNeice seven long years to save up, and she describes the process as "hugely stressful" – but also "liberating". "Because it was freedom from the rental market," she explains.
And she's not alone in feeling grateful for government concessions. "I would have been a lot worse off financially," she says. "It was hugely useful, I really needed it."
So, what schemes are available, and what's changing? Currently, first home buyers in Tasmania can access a $30,000 grant for new homes, and a stamp duty exemption for established homes valued up to $750,000 – but these incentives are due to expire on June 30.
Treasurer Eric Abetz is playing it coy, saying he won't predict what might be in the May budget. But Jonathon Coleman, a Tasmanian mortgage broker, is optimistic that the incentives will continue in some form. "I'd find it very surprising if they completely end," he says.
Coleman has seen a surge in first homebuyer activity in the past six months, which has boosted the market and helped non-first home buyers move up the property ladder. However, he's also noticed confusion among prospective buyers about what schemes are available and how to access them.
"There are more than enough options out there, and it's enabling more people to get into the market," he says. "But because there are so many different ways to get in, that's where the confusion comes in."
First home buyers in Tasmania also have access to the state government's MyHome shared equity scheme, which allows eligible buyers to purchase with just a 2% deposit. The federal government has a similar scheme, but Tasmania hasn't signed up – yet. Housing Minister Kerry Vincent says they'll consider it once it's up and running.
Interestingly, research shows that these schemes are driving growth in the lower end of the market. In Hobart, house values in the lower quartile rose 5.2% in the December quarter, compared to 2.6% in the highest quartile.
So, what do you think? Will the government extend these schemes, or is it time for first home buyers to fend for themselves? Share your thoughts!
