Tasmania welcomes first home owners boost
Tasmanians looking to break into the residential property sector received an economic boost this week after the state government announced plans to bump up the first buyer grant.
Lauding the initiative, Housing Industry Association executive director Stuart Clues said doubling the First Home Owners Grant (FHOG) would bolster activity in the real estate industry.
"The state government's announcement today (December 10) could be the adrenalin shot in the arm the industry needs to start rebuilding in 2013," Mr Clues explained.
"If the state government were to double the FHOG to the construction of new homes, we predict we would see around an extra 500 new homes being constructed for young Tasmanians in 2013."
Mr Clues said increased monetary incentives would also ease pressure off the rental market, with more people opting to buy their own home.
The expert went on to add that the housing package will bolster activity in the residential construction sector following a significant loss in the industry this year.
Premier Lara Giddings said doubling the FHOG for the construction of new dwellings to $15,000 will kickstart the development of 1,100 new homes.