Builders, who build properties without a confirmed buyer, are worried they won't be able to sell their houses because of the narrow eligibility criteria of government HomeBuilder schemes.
On Friday the state government announced the eligibility criteria for the grant which is aimed at stimulating the construction industry.
The grant aligns with a federal HomeBuilder grant of $25,000 for new homes.
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Builders want the wording of the state grant changed to align with the Tasmanian First Home Owners grant, which would allow anyone buying a brand new home of any kind to be eligible.
People purchasing speculative houses are eligible for the federal grant if construction started after June 4 and the property is purchased before December 31.
The state grant however excludes people who are buying speculative houses, although first home buyers would still be eligible for the First Home Owners grant.
Darren Goodyer says the grants will prevent him from selling houses already under construction. His company, D&B Goodyer Developments, has kept 28 people plus contractors employed during COVID-19 but he says if they can't sell their houses they will have to stop work.
"Who is going to buy my houses, if they can't get $45,000?," he said.
"Most of them are under construction now or we have several other ones coming up but because we have already gone through planning we are going to be ineligible. It means that I will have to stop building and wait until this grant is removed to make it an even playing field."
Finance Minister Michael Ferguson said the scheme was designed to match the federal grant criteria.
He said both schemes were designed to provide immediate stimulus to the economy.
"These programs are not designed to provide cash supplements toward homes already under construction or about to be completed, such as spec homes," Mr Ferguson said.
But CHS Property Developments project manager Amanda Foster said if builders can't sell their properties they won't be able to afford to keep people employed.
"Long term we would have to stop work and that would mean nine people directly out of employment, three apprentices directly out of employment let alone all the contractors we employ," she said.
"I hope that the government will ... see our concern and understand our concern as a major player in the residential construction sector in Tasmania and realign the wording to include all new dwellings and all off the plan purchases."
Harris Daley Developments director Daniel Harris agreed the grants could cost jobs and cause properties to stay on the market longer.
"We have people sitting there that would love to buy units but only if they can get this grant money," he said.
"If we can't sell them, there is only so much support we can get from the bank before they start tightening things, so we will have to slow down.
"Which is a shame because it obviously affects everyone else as well."
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