Property may soon be within reach of first time investors in one state after the announcement of a ‘ground breaking new housing initiative’, according to a government body.
Tasmanians should benefit under the initiative, which will bring 400 new opportunities to get a lower entry point into the market, according to premier Lara Giddings.
The State Government just recently signed a memorandum with Brighton Industrial and Housing Corporation (BIHC) in conjunction with council to see land supplied to BIHC.
"The Tasmanian Government's highest priorities are fostering economic development and helping Tasmanians respond to the rising cost of living," Ms Giddings said.
"The injection of around $100 million that the Corporation will deliver is great news for workers and businesses in our building and construction industry.
"It is expected this investment will provide an overall boost of some $300 million for the wider economy,” she said.
Other positives have also been seen in the flat housing market, Ms Giddings said, with rate cuts potentially fuelling new buyers.
"Data from the ABS last week showed a 29 per cent rise in new home buyers in May, the highest increase in the country, while overall housing finance and the value of loans also increased,” she said.
BIHC will be utilizing the government’s HomeShare model.
“Shared equity schemes like HomeShare reduce the amount of money home buyers need to borrow. This means the amount of an initial loan is reduced and the repayments are also reduced,” she said.
"By financing through shared equity, repayments on the properties in this development can be reduced to as low as $285 a week, which is in some cases less than the cost of renting a family home."