Mrs LAMBLEY - 2016-04-19
Since the government changed the guidelines to the First Home Owner Grant to not include existing homes in Alice Springs, the rate of take-up of the First Home Owner Grant has dropped dramatically. In 2014 233 First Home Owner Grants were paid in Alice Springs. In 2015 just 13 grants were paid under the new guidelines. This is a dramatic drop of 220 homes. This government policy is not working. The impact on Alice Springs businesses across the board is profound. People are not staying in Alice Springs. They cannot afford to live or buy a home in Alice Springs.
Would your government reconsider providing some level of first home owner assistance to the people of Alice Springs?
ANSWER
Madam Speaker, I thank the member for Araluen for the question. I will not dispute her on the numbers. They sound accurate from what I have seen. No doubt the number of First Home Owner Grants would dramatically reduce because we only have them on newly-constructed homes, not existing homes. The data does not present, to me, any new challenges.
I understand the point about the $26 000 to help people get into a new home; that presents an opportunity to support people. In the majority of areas in the Northern Territory we have seen a downward pressure on housing prices, which has helped reduce the cost-of-living pressure.
One of the challenges with a grant – we would be the only jurisdiction in the country if we were to provide a grant to first home buyers for existing homes – is that it increases the cost of housing. By removing it the cost of housing is reduced. It is harder for a first home buyer to come up with a deposit; I understand that, but reducing the cost of housing reduces the loan amount. Reducing the loan amount on the principal reduces the amount a person has to repay and the amount of interest over a 25- or 30-year loan, depending on the term of the agreement.
There is a balance in this equation. I appreciate the sentiment of your question, but the principle comes back to – by removing the $26 000 on established homes are we reducing the cost of housing and reducing the interest-free payments by $100 000 to $300 000? They are big numbers, and you also reduce the principal, which is up to the individual; they can shorten the term of the loan if that is what happens.
We are seeing a lot of evidence of that in the Top End. You are right; in Central Australia it has not changed as much. I was at an inspection of a property on the weekend; I think it was 32 Lackman Terrace. There were reams of people going through, including first home buyers. Our data shows that first home buyers on established homes are coming back across the Territory, not just in the Top End.
It has also shown that First Home Owner grants in the newly-constructed …
Mrs LAMBLEY: A point of order, Madam Speaker! Standing Order 110: relevance. My question was, would the Chief Minister consider providing some level of first home owner assistance, not necessarily going back to the $25 000 previously in place for existing homes?
Mr GILES: Madam Speaker, I am getting to the point of the question. Our data suggests that the number of first home owners in the newly-constructed market is increasing like we have never seen before. It is increasing in established homes, but government is considering what it can do in regard to options. We are not ruling anything in or out.
Would your government reconsider providing some level of first home owner assistance to the people of Alice Springs?
ANSWER
Madam Speaker, I thank the member for Araluen for the question. I will not dispute her on the numbers. They sound accurate from what I have seen. No doubt the number of First Home Owner Grants would dramatically reduce because we only have them on newly-constructed homes, not existing homes. The data does not present, to me, any new challenges.
I understand the point about the $26 000 to help people get into a new home; that presents an opportunity to support people. In the majority of areas in the Northern Territory we have seen a downward pressure on housing prices, which has helped reduce the cost-of-living pressure.
One of the challenges with a grant – we would be the only jurisdiction in the country if we were to provide a grant to first home buyers for existing homes – is that it increases the cost of housing. By removing it the cost of housing is reduced. It is harder for a first home buyer to come up with a deposit; I understand that, but reducing the cost of housing reduces the loan amount. Reducing the loan amount on the principal reduces the amount a person has to repay and the amount of interest over a 25- or 30-year loan, depending on the term of the agreement.
There is a balance in this equation. I appreciate the sentiment of your question, but the principle comes back to – by removing the $26 000 on established homes are we reducing the cost of housing and reducing the interest-free payments by $100 000 to $300 000? They are big numbers, and you also reduce the principal, which is up to the individual; they can shorten the term of the loan if that is what happens.
We are seeing a lot of evidence of that in the Top End. You are right; in Central Australia it has not changed as much. I was at an inspection of a property on the weekend; I think it was 32 Lackman Terrace. There were reams of people going through, including first home buyers. Our data shows that first home buyers on established homes are coming back across the Territory, not just in the Top End.
It has also shown that First Home Owner grants in the newly-constructed …
Mrs LAMBLEY: A point of order, Madam Speaker! Standing Order 110: relevance. My question was, would the Chief Minister consider providing some level of first home owner assistance, not necessarily going back to the $25 000 previously in place for existing homes?
Mr GILES: Madam Speaker, I am getting to the point of the question. Our data suggests that the number of first home owners in the newly-constructed market is increasing like we have never seen before. It is increasing in established homes, but government is considering what it can do in regard to options. We are not ruling anything in or out.
Last updated: 09 Aug 2016