news

FHO grant for existing homes scrapped in NT

By Staff Reporter

Under changes brought in by the Northern Territory government, first home owners buying established properties will no longer be eligible for a grant.

Currently, first-time buyers can apply for a $12,000 bonus to purchase an existing home in an urban area, meaning Darwin, Palmerston or Litchfield.

From 1 January 2015, this payment will be eliminated.

Treasurer David Tollner said the current system was inflating house prices by putting pressure on the limited supply of housing in Darwin.

“That’s why the Territory government will direct the first home owner grant (FHOG) solely towards the construction or purchase of new homes from next year,” he said.

Newcomers to property can access a grant worth $25,000 for the construction of a new home. This sum will be raised to $26,000 as of 13 May 2014.

In addition, though the grant is currently limited to properties worth less than $600,000, this limit will no longer apply.

Mr Tollner said the changes would lead to growth in housing stock and employment in the construction sector.

“Ultimately, we want this grant to encourage the construction of new homes, create more jobs in the residential construction sector and improve housing affordability by increasing housing stock,” he said.

“This is a far better result than merely creating a churn in existing dwellings that is widely accepted as having an inflationary effect on the cost of housing."

FHO grant for existing homes scrapped in NT
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%