Home loans in TAS
Tasmania is the smallest state in Australia with the lowest population. More than any other state, most of Tasmania’s inhabitants live in the main metropolitan areas of Hobart – the state’s capital, and Launceston. This fact promotes demand in these locations; however, property prices in Tasmania are generally cheaper than in most other Australian states.
The state also has specific duties and taxes as well as grants and concessions that should be taken into account when acquiring a home loan in Tasmania.
What is Tasmania’s economy and property market like?
In the past decade the Tasmanian property market has been somewhat undervalued, which has now caused a sharp rebound in prices. Though more expensive than in previous years, Tasmania’s property prices remain less expensive than other states. This includes both Hobart and Launceston, which have average property prices well below the averages of similar cities, such as, Brisbane and Canberra.
Despite the cheaper property prices, Tasmania suffers from high rental market demand. This results in limited supply with rental prices generally high for the main towns of Tasmania.
Is it easy to get a home loan in Tasmania?
The legal systems underpinning Tasmania’s property market are similar to most states across Australia. Due to the state’s smaller population and high rental demand, there is usually high interest from interstate and foreign investors. In addition, you will find demand is highest in Hobart and Launceston, which have more employment opportunities and provide a better quality of life than other parts of Tasmania.
Tasmania is more susceptible than other states in Australia to cold weather spells, including strong winds and periods of snow. It is recommended you should ensure the property you are looking at purchasing can withstand the weather conditions and is fully insulated.
What are the costs and fees of buying a property in Tasmania?
If you purchase a property or land in Tasmania, the state government requires you pay both a Property Transfer Duty (formerly stamp duty) and a Land Tax. These are common fees in most states across the country and are calculated based on the value of the property. You should ensure these are budgeted for before securing your home loan.
Can I get any grants or concessions for getting a home loan?
The Tasmania government offers grants for first home buyers looking to get into the local market. The main two are First Home Owner Grant (FHOG) and First Home Builder Boost (FHBB). You will only be eligible for these one-off payments if you are buying or building a new home. The Tasmanian government offers several concessions for both the land tax and property transfer duty it you have special circumstances. These include if it is your principle place of residence or if the property is transferred between partners who are married or in a significant relationship. These grants and concessions often change and should be fully researched before making an application.