1 00:00:00,120 --> 00:00:02,719 Speaker 1: Well. Earlier this week, I caught up with the CEO 2 00:00:02,800 --> 00:00:05,600 Speaker 1: of Master Builders and spoke about the federal government's first 3 00:00:05,600 --> 00:00:08,320 Speaker 1: Home buy deposit scheme, which has been fast tracked to 4 00:00:08,360 --> 00:00:09,680 Speaker 1: start in October. 5 00:00:10,080 --> 00:00:10,240 Speaker 2: Now. 6 00:00:10,240 --> 00:00:12,760 Speaker 1: The scheme is going to allow first home buyers to 7 00:00:12,760 --> 00:00:16,280 Speaker 1: purchase a property with a five percent deposit without needing 8 00:00:16,320 --> 00:00:20,600 Speaker 1: to pay lender's mortgage insurance, with previous income limits on 9 00:00:20,760 --> 00:00:22,720 Speaker 1: eligibility being removed. 10 00:00:23,200 --> 00:00:23,439 Speaker 2: Now. 11 00:00:23,600 --> 00:00:27,320 Speaker 1: There was criticism in some other states that not many 12 00:00:27,360 --> 00:00:31,560 Speaker 1: desirable houses fit within the scheme's property price caps, so 13 00:00:31,600 --> 00:00:35,239 Speaker 1: those were lifted in Sydney, Melbourne and Brisbane, but as 14 00:00:35,280 --> 00:00:38,519 Speaker 1: I understand it, that wasn't the case for Darwin. Now 15 00:00:38,600 --> 00:00:42,600 Speaker 1: joining us on the line is Real Estate Central's Daniel Harris. 16 00:00:42,640 --> 00:00:43,440 Speaker 1: Good morning to you. 17 00:00:43,440 --> 00:00:46,199 Speaker 2: Daniel, Hey Katie, good morning Hew. 18 00:00:46,200 --> 00:00:49,640 Speaker 1: Are you you're really good now? Daniel tell me I 19 00:00:49,680 --> 00:00:52,760 Speaker 1: would assume that you guys welcome this scheme, but it 20 00:00:52,880 --> 00:00:56,480 Speaker 1: sounds as though there are a few issues for us 21 00:00:56,600 --> 00:00:57,600 Speaker 1: here in the top end. 22 00:00:58,800 --> 00:01:01,520 Speaker 2: Yes, I've definitely positive to theme, and I like what 23 00:01:01,560 --> 00:01:03,639 Speaker 2: the federal government's trying to do and help people get 24 00:01:03,640 --> 00:01:07,319 Speaker 2: into their first time That poor old NT it seems 25 00:01:07,319 --> 00:01:10,840 Speaker 2: like we've been forgotten about somewhat. Everywhere else in the 26 00:01:10,880 --> 00:01:15,560 Speaker 2: country has had their current price cap adjusted Northwood and 27 00:01:15,680 --> 00:01:18,600 Speaker 2: despite us having more growth than anywhere the last three 28 00:01:18,640 --> 00:01:21,360 Speaker 2: or four months, we've remained the same at six hundred grand, 29 00:01:21,360 --> 00:01:24,160 Speaker 2: which it almost the sort of reads of they haven't 30 00:01:24,160 --> 00:01:26,480 Speaker 2: properly understood the data or even looked at darl And 31 00:01:26,520 --> 00:01:27,319 Speaker 2: properly to be honest. 32 00:01:27,480 --> 00:01:28,880 Speaker 1: Yeah, well, and this is the thing, you know, we 33 00:01:29,040 --> 00:01:32,280 Speaker 1: quite often catch up with with some of those data 34 00:01:32,280 --> 00:01:34,760 Speaker 1: collectors I you know, core Logic and the like, and 35 00:01:34,800 --> 00:01:37,119 Speaker 1: they have spoken to us about the growth that we're 36 00:01:37,120 --> 00:01:41,520 Speaker 1: seeing here in the Northern Territory in Darwin, Like when 37 00:01:41,560 --> 00:01:44,080 Speaker 1: you look at the number of houses even at the 38 00:01:44,120 --> 00:01:47,720 Speaker 1: moment that are currently for sale that you know that 39 00:01:47,840 --> 00:01:51,680 Speaker 1: are at that six hundred k or under mark, do 40 00:01:51,800 --> 00:01:52,560 Speaker 1: we have many? 41 00:01:53,960 --> 00:01:56,600 Speaker 2: No, And it's changing quite rapidly so, I mean, if 42 00:01:56,640 --> 00:01:58,840 Speaker 2: we had this conversation a year ago to be very different, 43 00:01:58,840 --> 00:02:02,240 Speaker 2: but right now it is tricky for buyers trying to 44 00:02:02,240 --> 00:02:05,320 Speaker 2: buy something under six hundred grand. I mean obviously you 45 00:02:05,360 --> 00:02:07,480 Speaker 2: want to you know, from a responsible landing and that 46 00:02:07,480 --> 00:02:09,200 Speaker 2: sort of thing as well, and not suggesting people that 47 00:02:09,240 --> 00:02:11,440 Speaker 2: aren't in a position to go out and get big mortgages. 48 00:02:11,480 --> 00:02:14,079 Speaker 2: But it's not really fair on the territory first home 49 00:02:14,120 --> 00:02:16,720 Speaker 2: buyers that their cap hasn't been increased in line with 50 00:02:16,919 --> 00:02:18,720 Speaker 2: other states and in line with the price breath that 51 00:02:18,760 --> 00:02:22,160 Speaker 2: we've had recently. That's the bit that's disappointing, Like, yeah, 52 00:02:22,240 --> 00:02:24,040 Speaker 2: the last three or four months have been number one 53 00:02:24,040 --> 00:02:26,720 Speaker 2: in the whole country and our cap hasn't even changed. 54 00:02:26,720 --> 00:02:29,080 Speaker 2: So if you've got to buy that, it's really hard. 55 00:02:29,560 --> 00:02:31,560 Speaker 2: If they're trying to buy say a house and land 56 00:02:31,560 --> 00:02:33,880 Speaker 2: package just six hundred grand, it's really hard to make 57 00:02:33,919 --> 00:02:36,240 Speaker 2: that work with the bill costs. If that up it 58 00:02:36,280 --> 00:02:38,000 Speaker 2: to like seven hundred grand, I would have thought that 59 00:02:38,000 --> 00:02:40,519 Speaker 2: would have made more sense in line with what Tasmania 60 00:02:40,600 --> 00:02:42,760 Speaker 2: got their cap went from six hundred to seven hundred, 61 00:02:43,000 --> 00:02:45,400 Speaker 2: but the territory is it's remained the same at six hundred. 62 00:02:45,520 --> 00:02:48,720 Speaker 1: Just doesn't make sense, Like so do we actually because 63 00:02:48,880 --> 00:02:50,640 Speaker 1: does it? First off? I mean does it have to 64 00:02:50,639 --> 00:02:52,280 Speaker 1: be a house or can it be a unit or 65 00:02:52,320 --> 00:02:53,000 Speaker 1: a townhouse? 66 00:02:53,200 --> 00:02:55,040 Speaker 2: It can be a unit and it will help the 67 00:02:55,160 --> 00:02:57,600 Speaker 2: unit market, no question. So I've mean a whole other 68 00:02:57,600 --> 00:03:01,320 Speaker 2: conversation to Australia wide. This is going to increased prices 69 00:03:01,360 --> 00:03:03,919 Speaker 2: in the up to the cap ranges in every state. 70 00:03:04,760 --> 00:03:06,840 Speaker 2: So I think it will help the units and anything 71 00:03:06,919 --> 00:03:09,760 Speaker 2: up to six hundred thousand, but it's just a bit disappointing. 72 00:03:09,800 --> 00:03:11,880 Speaker 2: I think for buyers in our markets, they don't have 73 00:03:11,919 --> 00:03:12,440 Speaker 2: that choice. 74 00:03:13,000 --> 00:03:15,880 Speaker 1: Yeah, so what do you reckon it should go up to? 75 00:03:16,120 --> 00:03:18,560 Speaker 1: Do you think like that's that's seven hundred I've been. 76 00:03:18,880 --> 00:03:21,160 Speaker 2: Seven hundred grand would have made sense exactly the same 77 00:03:21,160 --> 00:03:23,600 Speaker 2: as what TASMANI went from six hundred to seven hundred. 78 00:03:23,960 --> 00:03:26,080 Speaker 2: The MPT should have been the same. I mean Sydney 79 00:03:26,120 --> 00:03:28,280 Speaker 2: or New South Wales went from nine hundred grand cap 80 00:03:28,360 --> 00:03:29,520 Speaker 2: up to one point three million. 81 00:03:29,560 --> 00:03:33,320 Speaker 1: Give y wow, I mean that's a big change. Like 82 00:03:33,360 --> 00:03:35,200 Speaker 1: when you when you look at the number Z and 83 00:03:35,520 --> 00:03:38,440 Speaker 1: in terms of the stock available, if you if it 84 00:03:38,560 --> 00:03:41,200 Speaker 1: changed from sort of you know, six hundred thousand up 85 00:03:41,240 --> 00:03:44,720 Speaker 1: to seven hundred thousand, what kind of difference would that 86 00:03:44,800 --> 00:03:46,440 Speaker 1: make you know? Quantity wise? 87 00:03:46,480 --> 00:03:50,040 Speaker 2: I suppose, well, we'll just give our first home buys 88 00:03:50,080 --> 00:03:52,400 Speaker 2: a lot more choice, and they're quite limited under six 89 00:03:52,440 --> 00:03:55,560 Speaker 2: hundred grand at the moment. So the point is, if 90 00:03:55,600 --> 00:03:58,480 Speaker 2: there it's a great scheme. If they've got the trickiest 91 00:03:58,480 --> 00:04:01,200 Speaker 2: thing for most firm first name buy is saving their deposits. 92 00:04:01,200 --> 00:04:03,920 Speaker 2: So what this scheme enables them to do is they've 93 00:04:03,960 --> 00:04:05,880 Speaker 2: got you know, you've got a couple with really good 94 00:04:05,880 --> 00:04:07,880 Speaker 2: paying jobs. Why shouldn't they be able to go and 95 00:04:07,920 --> 00:04:09,760 Speaker 2: spend seven hundred thousand on the home and use this 96 00:04:09,800 --> 00:04:12,680 Speaker 2: scheme like other other tone biers and other states can. 97 00:04:12,760 --> 00:04:15,320 Speaker 2: That's that's the bit that's disappointing. But overall it's a 98 00:04:15,360 --> 00:04:17,560 Speaker 2: positive thing. It's just it's just a bit sad for 99 00:04:17,600 --> 00:04:20,800 Speaker 2: the territory that it seems to Yeah, as is often 100 00:04:20,839 --> 00:04:23,880 Speaker 2: they've been missed or they haven't properly understood what's happening here. 101 00:04:23,960 --> 00:04:26,520 Speaker 1: Yeah, So from your like, have you reached out to 102 00:04:26,600 --> 00:04:30,239 Speaker 1: the federal member for Solomon, Luke Gosling or to anybody else. 103 00:04:30,080 --> 00:04:32,560 Speaker 2: To Sinavay, Yeah, I had quite a few people ring me. 104 00:04:32,680 --> 00:04:34,080 Speaker 2: So a few of us have written to Luke and 105 00:04:34,080 --> 00:04:35,880 Speaker 2: his team have been great. They've gotten back to us 106 00:04:35,960 --> 00:04:38,160 Speaker 2: and they're going to look into it. But yeah, so 107 00:04:38,240 --> 00:04:39,880 Speaker 2: we haven't got any answers on it yet, but yeah, 108 00:04:39,920 --> 00:04:42,480 Speaker 2: trying and understand how they've come up with that. The 109 00:04:42,520 --> 00:04:44,680 Speaker 2: only thing I've can conclude is they're looking at data 110 00:04:44,760 --> 00:04:46,400 Speaker 2: from last year and they haven't actually looked at the 111 00:04:46,440 --> 00:04:48,000 Speaker 2: moment the last three or four months. 112 00:04:48,160 --> 00:04:50,440 Speaker 1: Yeah, right, so at this point in time, they've said 113 00:04:50,440 --> 00:04:53,200 Speaker 1: they'll have a look into it, but no, nothing sort 114 00:04:53,200 --> 00:04:56,880 Speaker 1: of finalized yet. In terms of whether they might be 115 00:04:56,920 --> 00:04:57,640 Speaker 1: able to raise that. 116 00:04:59,080 --> 00:05:00,720 Speaker 2: Yeah, I'm not sure if they can change it after 117 00:05:00,760 --> 00:05:03,120 Speaker 2: the fact, but would certainly logical it makes sense for 118 00:05:03,160 --> 00:05:05,000 Speaker 2: the NT to be changed from six hundred up to 119 00:05:05,320 --> 00:05:06,200 Speaker 2: up to seven hundred. 120 00:05:06,560 --> 00:05:09,760 Speaker 1: Yeah, look, Will Old definitely. We'll see whether we can 121 00:05:09,800 --> 00:05:11,719 Speaker 1: get in contact with his office as well to see 122 00:05:11,720 --> 00:05:13,160 Speaker 1: what we might be able to find out. I mean 123 00:05:13,200 --> 00:05:15,760 Speaker 1: all in all, How like, how's the market going at 124 00:05:15,760 --> 00:05:17,880 Speaker 1: the moment, Daniel from your perspective. 125 00:05:18,279 --> 00:05:21,360 Speaker 2: Yeah, but we've got a real shortage of supply and 126 00:05:21,440 --> 00:05:23,679 Speaker 2: high demand. So that's that's why we're saying, like Darlin's, 127 00:05:23,800 --> 00:05:26,120 Speaker 2: as I've just mentioned all the capital cities, it's seeing 128 00:05:26,120 --> 00:05:29,320 Speaker 2: more growth than anywhere right now. So while you've got 129 00:05:29,320 --> 00:05:31,440 Speaker 2: a situation where there's high demand and low supply, you're 130 00:05:31,480 --> 00:05:33,120 Speaker 2: going to keep getting growth from that doesn't look up 131 00:05:33,200 --> 00:05:35,480 Speaker 2: changing in the short term. So yeah, it's the strongest 132 00:05:35,480 --> 00:05:38,800 Speaker 2: market the Darlin scene for since the stop talking about 133 00:05:38,839 --> 00:05:40,920 Speaker 2: the intex days, because it is the strongest market we've 134 00:05:40,920 --> 00:05:41,560 Speaker 2: seen since then. 135 00:05:42,080 --> 00:05:43,960 Speaker 1: Yeah, right, but just not enough. You know, you need 136 00:05:44,000 --> 00:05:46,719 Speaker 1: more stock, need more people wanting to stock. 137 00:05:47,320 --> 00:05:50,640 Speaker 2: Yeah, and and that's another point too. If you raise 138 00:05:50,680 --> 00:05:52,400 Speaker 2: it to seven hundred thousand, you'd see a lot of 139 00:05:52,440 --> 00:05:55,360 Speaker 2: the first home buyers we've currently got at state level 140 00:05:55,839 --> 00:05:58,359 Speaker 2: the highest or the most generous grants ever with the 141 00:05:58,360 --> 00:06:00,360 Speaker 2: fifty thousands for first home Wise, if you raised it 142 00:06:00,400 --> 00:06:02,920 Speaker 2: to seven hundred, so many more of them would be 143 00:06:02,960 --> 00:06:05,599 Speaker 2: able to go out buy land, build a house and 144 00:06:05,640 --> 00:06:08,000 Speaker 2: make it work in that price range, because it's really 145 00:06:08,040 --> 00:06:10,240 Speaker 2: tricky to buy a block of land and build a 146 00:06:10,279 --> 00:06:12,719 Speaker 2: house and keep it under six hundred and that what 147 00:06:12,839 --> 00:06:15,480 Speaker 2: that does, that stimulates how economy, it creates more housing, 148 00:06:15,640 --> 00:06:18,760 Speaker 2: solves the housing crisis. Yeah, they've missed a tricky are 149 00:06:18,800 --> 00:06:19,680 Speaker 2: a little bit to film? 150 00:06:19,760 --> 00:06:22,240 Speaker 1: Yeah, Oh well well we'll certainly we'll see whether we 151 00:06:22,279 --> 00:06:23,919 Speaker 1: can have a chat with Luke at some point on 152 00:06:23,960 --> 00:06:26,320 Speaker 1: the show next week and see what we can find out. 153 00:06:26,320 --> 00:06:29,200 Speaker 1: But yeah, I think it's interesting and as I say, 154 00:06:29,240 --> 00:06:30,960 Speaker 1: it's something that a few people had actually been in 155 00:06:31,000 --> 00:06:33,000 Speaker 1: contact with us about people that kind of work in 156 00:06:33,040 --> 00:06:35,880 Speaker 1: that finance area as well, saying it just is you know, 157 00:06:35,920 --> 00:06:38,160 Speaker 1: it seemed a little bit odd than in other locations 158 00:06:38,200 --> 00:06:40,880 Speaker 1: it went up, but for us it didn't. Despite the 159 00:06:40,920 --> 00:06:45,320 Speaker 1: fact that as you've touched on, you know, there's there is, yeah, 160 00:06:45,360 --> 00:06:47,919 Speaker 1: there's you know, there's been those changes to the market 161 00:06:47,920 --> 00:06:49,880 Speaker 1: over the last few months where we have seen I. 162 00:06:49,880 --> 00:06:52,800 Speaker 2: Mean yeah, the builders, the mortgage brokers, the agents. To 163 00:06:52,800 --> 00:06:55,960 Speaker 2: be honest, I sold an investment property to an agent 164 00:06:55,960 --> 00:06:59,400 Speaker 2: from another state a few weeks ago and even she 165 00:06:59,520 --> 00:07:01,679 Speaker 2: rang in this what's going on up there? That doesn't 166 00:07:01,720 --> 00:07:04,640 Speaker 2: make sense. Your market's growing quicker than anyone. Why haven't 167 00:07:04,680 --> 00:07:06,839 Speaker 2: they changed your price cap? And I said, you couldn't 168 00:07:06,839 --> 00:07:08,400 Speaker 2: agree more so, Oh well. 169 00:07:08,240 --> 00:07:10,720 Speaker 1: We'll follow it up. Daniel, lovely to talk to you 170 00:07:10,720 --> 00:07:12,920 Speaker 1: this morning. I really appreciate your time. Thanks for having 171 00:07:12,920 --> 00:07:14,880 Speaker 1: a chat with us. Thank you.