NT gov't to build confidence in local property market
The Northern Territory is experiencing increased economic growth stemming from its lucrative resources sector.
As a result of the fast rate of development, some first time buyers and property investors have seized the opportunity to enter the market.
However, the residential property development - that has spurred from mining projects like the Ichthys Project - has brought some trepidation.
Rapid growth often leads to some anxiety about the chance that something could adversely affect new investments during the building stages.
To counteract this anxiety and build confidence in the community, minister for lands and planning Gerry McCarthy has announced a Residential Building Cover program.
"As we enter the next stage of Territory growth we need to ensure that home buyers and builders feel confident that they are protected from unforeseen circumstances during construction," he said.
Informed by feedback gathered from the industry as well as the community over the last year, the initiative will come into effect January 1 2013.
It aims to protect the consumer from uncompleted construction contracts, non-compliance and other failings of residential building works that arise through a variety of circumstances.
Mr McCarthy described the main purpose of the cover as "ensuring consumer protection while maintaining a healthy industry".