Tasmanian First Home Builder Boost 'adds fuel to oversupply', says broker

by Mackenzie McCarty12 Dec 2012

The Tasmanian State Treasurer has announced the implementation of an $8,000 First Home Builder Boost (FHBB) incentive, aimed at helping first home owners – but it may not be what the doctor ordered.

Aussie’s Tasmanian franchise principal, Chris Antypas, says the scheme may not be as positive for the local housing industry as it sounds, given that the state's housing market is actually experiencing the opposite problem to many other regions.

“We don’t have a shortfall of property here like they do in other states, we have an oversupply – I think this really isn’t going to help at all.”

Anytpas says the FHBB, which is tied to eligibility for the $7,000 First Home Owner’s Grant (FHOG), has likely been created in order to aid the state’s construction industry, rather than to solve any sort of housing shortage. He says he would have preferred to see further incentives offered to buyers looking at established homes.

"They probably should have gone to a general first time grant for buyers."

Approved applicants in Tasmania are now  eligible for a combined grant and boost of up to $15,000, so long as contracts are entered between January 1, 2013 and June 30, 2014.