Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Well. Earlier this week, I caught up with the CEO
of Master Builders and spoke about the federal government's first
Home buy deposit scheme, which has been fast tracked to
start in October.
Speaker 2 (00:10):
Now.
Speaker 1 (00:10):
The scheme is going to allow first home buyers to
purchase a property with a five percent deposit without needing
to pay lender's mortgage insurance, with previous income limits on
eligibility being removed.
Speaker 2 (00:23):
Now.
Speaker 1 (00:23):
There was criticism in some other states that not many
desirable houses fit within the scheme's property price caps, so
those were lifted in Sydney, Melbourne and Brisbane, but as
I understand it, that wasn't the case for Darwin. Now
joining us on the line is Real Estate Central's Daniel Harris.
Good morning to you.
Speaker 2 (00:43):
Daniel, Hey Katie, good morning Hew.
Speaker 1 (00:46):
Are you you're really good now? Daniel tell me I
would assume that you guys welcome this scheme, but it
sounds as though there are a few issues for us
here in the top end.
Speaker 2 (00:58):
Yes, I've definitely positive to theme, and I like what
the federal government's trying to do and help people get
into their first time That poor old NT it seems
like we've been forgotten about somewhat. Everywhere else in the
country has had their current price cap adjusted Northwood and
despite us having more growth than anywhere the last three
or four months, we've remained the same at six hundred grand,
(01:21):
which it almost the sort of reads of they haven't
properly understood the data or even looked at darl And
properly to be honest.
Speaker 1 (01:27):
Yeah, well, and this is the thing, you know, we
quite often catch up with with some of those data
collectors I you know, core Logic and the like, and
they have spoken to us about the growth that we're
seeing here in the Northern Territory in Darwin, Like when
you look at the number of houses even at the
moment that are currently for sale that you know that
(01:47):
are at that six hundred k or under mark, do
we have many?
Speaker 2 (01:53):
No, And it's changing quite rapidly so, I mean, if
we had this conversation a year ago to be very different,
but right now it is tricky for buyers trying to
buy something under six hundred grand. I mean obviously you
want to you know, from a responsible landing and that
sort of thing as well, and not suggesting people that
aren't in a position to go out and get big mortgages.
But it's not really fair on the territory first home
(02:14):
buyers that their cap hasn't been increased in line with
other states and in line with the price breath that
we've had recently. That's the bit that's disappointing, Like, yeah,
the last three or four months have been number one
in the whole country and our cap hasn't even changed.
So if you've got to buy that, it's really hard.
If they're trying to buy say a house and land
package just six hundred grand, it's really hard to make
that work with the bill costs. If that up it
(02:36):
to like seven hundred grand, I would have thought that
would have made more sense in line with what Tasmania
got their cap went from six hundred to seven hundred,
but the territory is it's remained the same at six hundred.
Speaker 1 (02:45):
Just doesn't make sense, Like so do we actually because
does it? First off? I mean does it have to
be a house or can it be a unit or
a townhouse?
Speaker 2 (02:53):
It can be a unit and it will help the
unit market, no question. So I've mean a whole other
conversation to Australia wide. This is going to increased prices
in the up to the cap ranges in every state.
So I think it will help the units and anything
up to six hundred thousand, but it's just a bit disappointing.
I think for buyers in our markets, they don't have
that choice.
Speaker 1 (03:13):
Yeah, so what do you reckon it should go up to?
Do you think like that's that's seven hundred I've been.
Speaker 2 (03:18):
Seven hundred grand would have made sense exactly the same
as what TASMANI went from six hundred to seven hundred.
The MPT should have been the same. I mean Sydney
or New South Wales went from nine hundred grand cap
up to one point three million.
Speaker 1 (03:29):
Give y wow, I mean that's a big change. Like
when you when you look at the number Z and
in terms of the stock available, if you if it
changed from sort of you know, six hundred thousand up
to seven hundred thousand, what kind of difference would that
make you know? Quantity wise?
Speaker 2 (03:46):
I suppose, well, we'll just give our first home buys
a lot more choice, and they're quite limited under six
hundred grand at the moment. So the point is, if
there it's a great scheme. If they've got the trickiest
thing for most firm first name buy is saving their deposits.
So what this scheme enables them to do is they've
got you know, you've got a couple with really good
paying jobs. Why shouldn't they be able to go and
(04:07):
spend seven hundred thousand on the home and use this
scheme like other other tone biers and other states can.
That's that's the bit that's disappointing. But overall it's a
positive thing. It's just it's just a bit sad for
the territory that it seems to Yeah, as is often
they've been missed or they haven't properly understood what's happening here.
Speaker 1 (04:23):
Yeah, So from your like, have you reached out to
the federal member for Solomon, Luke Gosling or to anybody else.
Speaker 2 (04:30):
To Sinavay, Yeah, I had quite a few people ring me.
So a few of us have written to Luke and
his team have been great. They've gotten back to us
and they're going to look into it. But yeah, so
we haven't got any answers on it yet, but yeah,
trying and understand how they've come up with that. The
only thing I've can conclude is they're looking at data
from last year and they haven't actually looked at the
moment the last three or four months.
Speaker 1 (04:48):
Yeah, right, so at this point in time, they've said
they'll have a look into it, but no, nothing sort
of finalized yet. In terms of whether they might be
able to raise that.
Speaker 2 (04:59):
Yeah, I'm not sure if they can change it after
the fact, but would certainly logical it makes sense for
the NT to be changed from six hundred up to
up to seven hundred.
Speaker 1 (05:06):
Yeah, look, Will Old definitely. We'll see whether we can
get in contact with his office as well to see
what we might be able to find out. I mean
all in all, How like, how's the market going at
the moment, Daniel from your perspective.
Speaker 2 (05:18):
Yeah, but we've got a real shortage of supply and
high demand. So that's that's why we're saying, like Darlin's,
as I've just mentioned all the capital cities, it's seeing
more growth than anywhere right now. So while you've got
a situation where there's high demand and low supply, you're
going to keep getting growth from that doesn't look up
changing in the short term. So yeah, it's the strongest
market the Darlin scene for since the stop talking about
(05:38):
the intex days, because it is the strongest market we've
seen since then.
Speaker 1 (05:42):
Yeah, right, but just not enough. You know, you need
more stock, need more people wanting to stock.
Speaker 2 (05:47):
Yeah, and and that's another point too. If you raise
it to seven hundred thousand, you'd see a lot of
the first home buyers we've currently got at state level
the highest or the most generous grants ever with the
fifty thousands for first home Wise, if you raised it
to seven hundred, so many more of them would be
able to go out buy land, build a house and
make it work in that price range, because it's really
(06:08):
tricky to buy a block of land and build a
house and keep it under six hundred and that what
that does, that stimulates how economy, it creates more housing,
solves the housing crisis. Yeah, they've missed a tricky are
a little bit to film?
Speaker 1 (06:19):
Yeah, Oh well well we'll certainly we'll see whether we
can have a chat with Luke at some point on
the show next week and see what we can find out.
But yeah, I think it's interesting and as I say,
it's something that a few people had actually been in
contact with us about people that kind of work in
that finance area as well, saying it just is you know,
it seemed a little bit odd than in other locations
it went up, but for us it didn't. Despite the
(06:40):
fact that as you've touched on, you know, there's there is, yeah,
there's you know, there's been those changes to the market
over the last few months where we have seen I.
Speaker 2 (06:49):
Mean yeah, the builders, the mortgage brokers, the agents. To
be honest, I sold an investment property to an agent
from another state a few weeks ago and even she
rang in this what's going on up there? That doesn't
make sense. Your market's growing quicker than anyone. Why haven't
they changed your price cap? And I said, you couldn't
agree more so, Oh well.
Speaker 1 (07:08):
We'll follow it up. Daniel, lovely to talk to you
this morning. I really appreciate your time. Thanks for having
a chat with us. Thank you.
Well. Earlier this week, I caught up with the CEO
of Master Builders and spoke about the federal government's first
Home buy deposit scheme, which has been fast tracked to
start in October.
Speaker 2 (00:10):
Now.
Speaker 1 (00:10):
The scheme is going to allow first home buyers to
purchase a property with a five percent deposit without needing
to pay lender's mortgage insurance, with previous income limits on
eligibility being removed.
Speaker 2 (00:23):
Now.
Speaker 1 (00:23):
There was criticism in some other states that not many
desirable houses fit within the scheme's property price caps, so
those were lifted in Sydney, Melbourne and Brisbane, but as
I understand it, that wasn't the case for Darwin. Now
joining us on the line is Real Estate Central's Daniel Harris.
Good morning to you.
Speaker 2 (00:43):
Daniel, Hey Katie, good morning Hew.
Speaker 1 (00:46):
Are you you're really good now? Daniel tell me I
would assume that you guys welcome this scheme, but it
sounds as though there are a few issues for us
here in the top end.
Speaker 2 (00:58):
Yes, I've definitely positive to theme, and I like what
the federal government's trying to do and help people get
into their first time That poor old NT it seems
like we've been forgotten about somewhat. Everywhere else in the
country has had their current price cap adjusted Northwood and
despite us having more growth than anywhere the last three
or four months, we've remained the same at six hundred grand,
(01:21):
which it almost the sort of reads of they haven't
properly understood the data or even looked at darl And
properly to be honest.
Speaker 1 (01:27):
Yeah, well, and this is the thing, you know, we
quite often catch up with with some of those data
collectors I you know, core Logic and the like, and
they have spoken to us about the growth that we're
seeing here in the Northern Territory in Darwin, Like when
you look at the number of houses even at the
moment that are currently for sale that you know that
(01:47):
are at that six hundred k or under mark, do
we have many?
Speaker 2 (01:53):
No, And it's changing quite rapidly so, I mean, if
we had this conversation a year ago to be very different,
but right now it is tricky for buyers trying to
buy something under six hundred grand. I mean obviously you
want to you know, from a responsible landing and that
sort of thing as well, and not suggesting people that
aren't in a position to go out and get big mortgages.
But it's not really fair on the territory first home
(02:14):
buyers that their cap hasn't been increased in line with
other states and in line with the price breath that
we've had recently. That's the bit that's disappointing, Like, yeah,
the last three or four months have been number one
in the whole country and our cap hasn't even changed.
So if you've got to buy that, it's really hard.
If they're trying to buy say a house and land
package just six hundred grand, it's really hard to make
that work with the bill costs. If that up it
(02:36):
to like seven hundred grand, I would have thought that
would have made more sense in line with what Tasmania
got their cap went from six hundred to seven hundred,
but the territory is it's remained the same at six hundred.
Speaker 1 (02:45):
Just doesn't make sense, Like so do we actually because
does it? First off? I mean does it have to
be a house or can it be a unit or
a townhouse?
Speaker 2 (02:53):
It can be a unit and it will help the
unit market, no question. So I've mean a whole other
conversation to Australia wide. This is going to increased prices
in the up to the cap ranges in every state.
So I think it will help the units and anything
up to six hundred thousand, but it's just a bit disappointing.
I think for buyers in our markets, they don't have
that choice.
Speaker 1 (03:13):
Yeah, so what do you reckon it should go up to?
Do you think like that's that's seven hundred I've been.
Speaker 2 (03:18):
Seven hundred grand would have made sense exactly the same
as what TASMANI went from six hundred to seven hundred.
The MPT should have been the same. I mean Sydney
or New South Wales went from nine hundred grand cap
up to one point three million.
Speaker 1 (03:29):
Give y wow, I mean that's a big change. Like
when you when you look at the number Z and
in terms of the stock available, if you if it
changed from sort of you know, six hundred thousand up
to seven hundred thousand, what kind of difference would that
make you know? Quantity wise?
Speaker 2 (03:46):
I suppose, well, we'll just give our first home buys
a lot more choice, and they're quite limited under six
hundred grand at the moment. So the point is, if
there it's a great scheme. If they've got the trickiest
thing for most firm first name buy is saving their deposits.
So what this scheme enables them to do is they've
got you know, you've got a couple with really good
paying jobs. Why shouldn't they be able to go and
(04:07):
spend seven hundred thousand on the home and use this
scheme like other other tone biers and other states can.
That's that's the bit that's disappointing. But overall it's a
positive thing. It's just it's just a bit sad for
the territory that it seems to Yeah, as is often
they've been missed or they haven't properly understood what's happening here.
Speaker 1 (04:23):
Yeah, So from your like, have you reached out to
the federal member for Solomon, Luke Gosling or to anybody else.
Speaker 2 (04:30):
To Sinavay, Yeah, I had quite a few people ring me.
So a few of us have written to Luke and
his team have been great. They've gotten back to us
and they're going to look into it. But yeah, so
we haven't got any answers on it yet, but yeah,
trying and understand how they've come up with that. The
only thing I've can conclude is they're looking at data
from last year and they haven't actually looked at the
moment the last three or four months.
Speaker 1 (04:48):
Yeah, right, so at this point in time, they've said
they'll have a look into it, but no, nothing sort
of finalized yet. In terms of whether they might be
able to raise that.
Speaker 2 (04:59):
Yeah, I'm not sure if they can change it after
the fact, but would certainly logical it makes sense for
the NT to be changed from six hundred up to
up to seven hundred.
Speaker 1 (05:06):
Yeah, look, Will Old definitely. We'll see whether we can
get in contact with his office as well to see
what we might be able to find out. I mean
all in all, How like, how's the market going at
the moment, Daniel from your perspective.
Speaker 2 (05:18):
Yeah, but we've got a real shortage of supply and
high demand. So that's that's why we're saying, like Darlin's,
as I've just mentioned all the capital cities, it's seeing
more growth than anywhere right now. So while you've got
a situation where there's high demand and low supply, you're
going to keep getting growth from that doesn't look up
changing in the short term. So yeah, it's the strongest
market the Darlin scene for since the stop talking about
(05:38):
the intex days, because it is the strongest market we've
seen since then.
Speaker 1 (05:42):
Yeah, right, but just not enough. You know, you need
more stock, need more people wanting to stock.
Speaker 2 (05:47):
Yeah, and and that's another point too. If you raise
it to seven hundred thousand, you'd see a lot of
the first home buyers we've currently got at state level
the highest or the most generous grants ever with the
fifty thousands for first home Wise, if you raised it
to seven hundred, so many more of them would be
able to go out buy land, build a house and
make it work in that price range, because it's really
(06:08):
tricky to buy a block of land and build a
house and keep it under six hundred and that what
that does, that stimulates how economy, it creates more housing,
solves the housing crisis. Yeah, they've missed a tricky are
a little bit to film?
Speaker 1 (06:19):
Yeah, Oh well well we'll certainly we'll see whether we
can have a chat with Luke at some point on
the show next week and see what we can find out.
But yeah, I think it's interesting and as I say,
it's something that a few people had actually been in
contact with us about people that kind of work in
that finance area as well, saying it just is you know,
it seemed a little bit odd than in other locations
it went up, but for us it didn't. Despite the
(06:40):
fact that as you've touched on, you know, there's there is, yeah,
there's you know, there's been those changes to the market
over the last few months where we have seen I.
Speaker 2 (06:49):
Mean yeah, the builders, the mortgage brokers, the agents. To
be honest, I sold an investment property to an agent
from another state a few weeks ago and even she
rang in this what's going on up there? That doesn't
make sense. Your market's growing quicker than anyone. Why haven't
they changed your price cap? And I said, you couldn't
agree more so, Oh well.
Speaker 1 (07:08):
We'll follow it up. Daniel, lovely to talk to you
this morning. I really appreciate your time. Thanks for having
a chat with us. Thank you.
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