First homebuyer schemes help Tasmanians get into the market but may expire on June 30

Alison McNeice’s home is her sanctuary — in many senses of the word.

As a wildlife carer, she regularly has a number of rescued birds in and around her house.

As a first-time home owner, it’s something she doesn’t take for granted.

Ms McNeice can care for birds at her home without worrying about landlords. (ABC News: Kate Nickels)

“It’s fantastic because I’ve been able to take some birds on and help them get homed and have the space to do that without worrying about landlords,” Ms McNeice said.

It took Ms McNeice seven years to save up to buy her house in 2024.

It’s a process she found “hugely stressful”, but also “liberating”.

“Because it was freedom from the rental market.”

Ms McNeice says she would have struggled to buy her first home without government help. (ABC News: Kate Nickels)

But, she said she doubted she’d be quite where she was now without government concessions.

“I would have been a lot worse off financially,” she said.

“It was hugely useful, I really needed it.”

Deadline nears for local concessions

A first home buyer who buys or builds a new home can get a $30,000 grant to help. (ABC News: Luke Bowden)

Currently, there are a range of concessions available to first home buyers in Tasmania, with two of them due to end on June 30.

A first home owner grant is available to eligible applicants who buy or build a new home in Tasmania.

Signs of property market cooling

The red-hot Australian housing market is showing the first signs of easing since interest rates started rising in May 2022.

Until June 30, the amount of the grant is $30,000.

For first home buyers purchasing established homes with a value of up to $750,000, there is a stamp duty exemption until June 30.

When asked about the expiration of the concessions, Treasurer Eric Abetz said he was “not going to predict what may or may not be in the May budget”.

Increase in activity noticed

Mortgage broker Jonathon Coleman. (ABC News: Ebony ten Broeke)

Tasmanian mortgage broker Jonathon Coleman said he expected the incentives would continue in some form after June 30.

“I’d find it very surprising if they completely end,” Mr Coleman said.

“Generally over the years they’ve adapted and changed every year.”

He said in the past six months, he’d seen a “big surge in first homebuyer activity”.

“That in turn has meant people selling properties, so not the first home buyers, being able to leapfrog into their next property.

“So it does actually boost the market and move things along for non-first home buyers as well.”

The first homebuyer schemes also mean existing home owners will have an easier time selling their homes when they upgrade. (ABC News: Mitchell Woolnough)

However, Mr Coleman said he had also noticed a lot of confusion from prospective buyers about what schemes were in effect, and how to access them.

He said making educated decisions was important.

“There are more than enough options out there, and it’s enabling more people to get into the market,” Mr Coleman said.

“But because there are so many different ways to get in, that’s where the confusion comes in.”

State and federal incentives

First home buyers in Tasmania also have access to the state government’s shared equity scheme MyHome that allows eligible first home buyers to purchase with a deposit of only 2 per cent.

The purchased property is co-owned with Homes Tasmania and the value cap is $800,000 for new builds, and $750,000 for existing homes.

The MyHome scheme allows the purchase of a home with a smaller deposit. (ABC News: Liz Pickering)

The federal government also has a shared equity scheme, which has fewer restrictions than the Tasmanian scheme, but the state has not signed up to it.

Housing Minister Kerry Vincent has previously said the state government would consider the federal scheme once it was operating, “so we can assess its performance against MyHome”.

Home buyers on government scheme struggling for seller interest

When Regan buys his first home, the government will own almost 30 per cent of it. But for that to even happen, a lot of things have to fall into place — all at once.

Research from property analyst Cotality shows more growth in house prices in the lower price brackets.

Cotality research director Tim Lawless said in the lower quartile of the Hobart market, there was a 5.2 per cent rise in house values in the December quarter, compared with a 2.6 per cent rise in house prices in the highest quartile.

Some of the stronger growth in values at the bottom end of the market has been attributed to schemes to help first home buyers.