NT axes first homebuyer grant for existing dwellings

NT axes first homebuyer grant for existing dwellings

Posted on Monday, May 12 2014 at 11:15 AM

The Northern Territory First Home Owners Grant (FHOG) will be directed towards the construction of new dwellings from 1 January 2015.

Additional changes to the grant remove the current
property value limit of $600,000 and increase the value of the grant for the purchase
or building of new homes from $25,000 to $26,000. These changes will take
effect from Budget Day May 13.

NT Treasurer Dave Tollner says the removal of the value
limit for new homes will reduce red tape by simplifying the application and
assessment process. It has the added benefit of removing the requirement that
the buyer pay for a valuation of the property.

“These are practical changes that will make the grant
more appealing and flexible to first home buyers that are buying or building
new homes,” Tollner says.

Currently, a grant of $12,000 is available for the
purchase of established homes in the urban area, essentially Darwin, Palmerston
and Litchfield. A grant of $25,000 is available for the purchase of established
homes outside the urban area.

To stimulate the construction of new homes, and
encourage the take up of the government’s program of accelerated land release,
the grant will only be available for the construction or purchase of a new home
from next year.

To assist first homebuyers who might be relying on the
FHOG to help fund the imminent purchase of an existing home, the government
will maintain the payment for existing dwellings for eight months.

“This will ensure an orderly transition and allows
buyers who are currently in the process of buying a home, or intending to do so
in the near future, with sufficient opportunity to take advantage of the FHOG
as part of that purchase until the end of the year,” Tollner says.

“But ultimately, we want this grant to encourage the
construction of new homes, create more jobs in the residential construction
sector and improving housing affordability by increasing housing stock.”

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