news

Developers struggle to obtain finance

By webmaster

The rising cost of funds and a lack of stamp duty concessions are hampering new unit construction in Hobart.

Hobart units are currently achieving an average annual growth rate of 11.4 per cent, according to RP Data.

Developer Heath Thompson, who is selling apartments in his new Bathurst St complex, said the market has been performing well, but has ruled out further investment in Hobart.

"As it stands now, we would never do another apartment complex like this in Tasmania," Mr Thompson said.

"In Melbourne there are huge stamp-duty savings if you buy off the plan,” he said.

“You can't get those pre-sales in Hobart, which means you can't get construction finance and you can't start building."

Premier Lara Giddings said Victoria was the only state with stamp-duty concessions for off-the-plan purchases but she said changes to land and payroll tax encouraged potential investors.

Tasmania was "well and truly open for business", she said.

"Overall Tasmania has the lowest taxation severity of any state or territory.”

Developers struggle to obtain finance
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%