Mr CHANDLER - 2011-05-05
You have announced a scheme to give Territorians $10 000 to build a new home. Is it not the case that the $10 000 will not help low-income Territorians who are struggling to save for a deposit because of the high costs of housing? In fact, it is more likely to increase the price of a home. How will your temporary scheme provide any lasting relief for struggling families trying to build a home?
ANSWER
Madam Speaker, I am glad the opposition is bagging BuildBonus, because they are out there on their own, apart from Trevor Dalton, of course, who does not seem to understand it.
I will put it pretty simply. There is currently a $7000 grant to assist the first homeowner trying to get into the housing market. The $10 000 BuildBonus will turn that $7000 into $17 000. Ask the first homeowner if they want to be given $17 000 from the taxpayer to help them buy a home. The answer is going to be yes.
Ask the person looking for a principal place of residence purchase - that is, they have owned before but often divorce occurs, they are back in the rental market and they want to buy again, so they are not eligible for the $7000 First Home Owner Grant. Ask them if they want to be given $10 000 by the taxpayer to get into a home.
Ask the person who is an investor who is looking at an opportunity to get an investment property, a rental property, to help with the family assets and help with the family prosperity - but also useful for us as help with the rental market. Ask them if they want to be given $10 000 by the taxpayer to purchase a rental property. I will give you the tip: the answer is yes.
What the government does regarding affordability to get into the housing market through the loan scenario is Homestart NT. Homestart NT is about getting the low- to middle-income earners a leg up into the property market. They are the ones the financial institutions, basically, do not want to touch; their income levels are too low. In this budget, we reset the price caps on Homestart NT: $530 000 is the price cap for Darwin and Palmerston, and there are adjusted regional price caps. We have increased the income limit for anyone going into Homestart NT, so that gives them access to 40% of the property market, but paying less than 30% of their income in mortgage. That is the affordability aspect.
If you want to look at what we have done in the past – the proof in the pudding, for example - Buildstart. That was the last payment stimulus scheme we had as a result of the global financial crisis. A total of 992 homes were purchased by accessing Buildstart. You are saying - the wise member for Brennan - that no one is going to be helped here. Well, Buildstart helped 992 people purchase into the property market. The figures were very high - and I do not have them on me - for the First Home Owners Boost scheme that operated at the same time as Buildstart. So, the proof is always in the pudding. The experience has been that 1000 Territorians are now homeowners in the property market as a result of those boost schemes.
We have backed it up with BuildBonus. It is innovative but, importantly, it also generates jobs because it goes to new construction. It will generate jobs in the housing market this Dry Season ahead of the boom times that are coming in 2012 because, as we know, we have some extremely exciting economic growth on our horizon.
ANSWER
Madam Speaker, I am glad the opposition is bagging BuildBonus, because they are out there on their own, apart from Trevor Dalton, of course, who does not seem to understand it.
I will put it pretty simply. There is currently a $7000 grant to assist the first homeowner trying to get into the housing market. The $10 000 BuildBonus will turn that $7000 into $17 000. Ask the first homeowner if they want to be given $17 000 from the taxpayer to help them buy a home. The answer is going to be yes.
Ask the person looking for a principal place of residence purchase - that is, they have owned before but often divorce occurs, they are back in the rental market and they want to buy again, so they are not eligible for the $7000 First Home Owner Grant. Ask them if they want to be given $10 000 by the taxpayer to get into a home.
Ask the person who is an investor who is looking at an opportunity to get an investment property, a rental property, to help with the family assets and help with the family prosperity - but also useful for us as help with the rental market. Ask them if they want to be given $10 000 by the taxpayer to purchase a rental property. I will give you the tip: the answer is yes.
What the government does regarding affordability to get into the housing market through the loan scenario is Homestart NT. Homestart NT is about getting the low- to middle-income earners a leg up into the property market. They are the ones the financial institutions, basically, do not want to touch; their income levels are too low. In this budget, we reset the price caps on Homestart NT: $530 000 is the price cap for Darwin and Palmerston, and there are adjusted regional price caps. We have increased the income limit for anyone going into Homestart NT, so that gives them access to 40% of the property market, but paying less than 30% of their income in mortgage. That is the affordability aspect.
If you want to look at what we have done in the past – the proof in the pudding, for example - Buildstart. That was the last payment stimulus scheme we had as a result of the global financial crisis. A total of 992 homes were purchased by accessing Buildstart. You are saying - the wise member for Brennan - that no one is going to be helped here. Well, Buildstart helped 992 people purchase into the property market. The figures were very high - and I do not have them on me - for the First Home Owners Boost scheme that operated at the same time as Buildstart. So, the proof is always in the pudding. The experience has been that 1000 Territorians are now homeowners in the property market as a result of those boost schemes.
We have backed it up with BuildBonus. It is innovative but, importantly, it also generates jobs because it goes to new construction. It will generate jobs in the housing market this Dry Season ahead of the boom times that are coming in 2012 because, as we know, we have some extremely exciting economic growth on our horizon.
Last updated: 09 Aug 2016