TASMANIANS hoping to break into the property market will be given a handy leg-up in this week’s state budget, which is set to include a $5 million funding pledge for the First Home Builders Boost. The state’s property and construction sectors are lauding the cash injection, confident an extension to the scheme will help keep a feared decline in building activity at bay. Treasurer Peter Gutwein yesterday stumped up the money to extend the stimulus scheme, which was set to be reduced from July and scrapped altogether at the end of this year. Home builders will now be able to access $20,000 grants until the end of December, with the scheme then to continue at $10,000 per new home built. Mr Gutwein said the incentive would help sustain momentum in building activity and create jobs across the state. ‘‘What this will mean is that there’s never been a better time in Tasmania to build your first home,’’ he said. Mr Gutwein said the extended scheme was the most generous of any state or territory in the country. Housing Industry Association state executive director Rick Sassin last week warned winding up the scheme would fuel a dramatic slowdown in building activity. Mr Sassin said yesterday the scheme’s extension may now see an extra 250 houses built. ‘‘It gives people that were rushing around trying to get plans and contracts done a bit of breathing space, and of course $20,000 is a year’s savings for many Tasmanians,’’ he said. Property Council of Australia Tasmanian executive director Brian Wightman said the extension would have a huge impact on young families trying to enter the property market. ‘‘Residential development is experiencing record growth in Tasmania and with today’s announcement, the sector will continue be the driving force in Tasmania’s economic recovery,’’ Mr Wightman said. However, Master Builders Tasmania executive director Michael Kerschbaum estimated the uptake would be much more modest. ‘‘We believe most of the demand for the boost has expired and its effect already washed through,’’ Mr Kerschbaum said. ‘‘It’s going to soften a downturn in residential construction, but at some stage the industry will need to stand on its own two feet.’’
TASMANIANS hoping to break into the property market will be given a handy leg-up in this week’s state budget, which is set to include a $5 million funding pledge for the First Home Builders Boost.
The state’s property and construction sectors are lauding the cash injection, confident an extension to the scheme will help keep a feared decline in building activity at bay.
Treasurer Peter Gutwein yesterday stumped up the money to extend the stimulus scheme, which was set to be reduced from July and scrapped altogether at the end of this year.
Home builders will now be able to access $20,000 grants until the end of December, with the scheme then to continue at $10,000 per new home built.
Mr Gutwein said the incentive would help sustain momentum in building activity and create jobs across the state.
‘‘What this will mean is that there’s never been a better time in Tasmania to build your first home,’’ he said.
Mr Gutwein said the extended scheme was the most generous of any state or territory in the country.
Housing Industry Association state executive director Rick Sassin last week warned winding up the scheme would fuel a dramatic slowdown in building activity.
Mr Sassin said yesterday the scheme’s extension may now see an extra 250 houses built.
‘‘It gives people that were rushing around trying to get plans and contracts done a bit of breathing space, and of course $20,000 is a year’s savings for many Tasmanians,’’ he said.
Property Council of Australia Tasmanian executive director Brian Wightman said the extension would have a huge impact on young families trying to enter the property market.
‘‘Residential development is experiencing record growth in Tasmania and with today’s announcement, the sector will continue be the driving force in Tasmania’s economic recovery,’’ Mr Wightman said.
However, Master Builders Tasmania executive director Michael Kerschbaum estimated the uptake would be much more modest.
‘‘We believe most of the demand for the boost has expired and its effect already washed through,’’ Mr Kerschbaum said.
‘‘It’s going to soften a downturn in residential construction, but at some stage the industry will need to stand on its own two feet.’’
