Steve Hearn (Managing Director – McDonald Jones Homes):
Good morning, my name is Steve Hearn from McDonald Jones. We’re fortunate to have the Minister with us today to have a look at one of our homes in Schofields. We’ve been very fortunate with the HomeBuilder grant. It’s helped us with our homes and the volume of homes that we’ve been able to take deposits on over the last few months since the scheme was launched in June. This is an example of one of the homes that we’re building in this area and as I said, we’re very fortunate to have the Minister here today to show him around and have a look at one of these homes.
Minister Sukkar:
Thank you, Stephen and thanks to the team at McDonald Jones Homes for having me here today at one of their sites here in Schofields which, as you can see, is a wonderful new development here in the outer suburbs of Sydney.
It’s also been great to be here with two recipients of two key Morrison Government policies, one being the First Home Loan Deposit Scheme and one being the HomeBuilder scheme. I have Fenicia and her beautiful daughters on my left – her and her husband have been recipients of a First Home Loan Deposit Scheme guarantee in Mount Druitt. As Fenicia was telling me, the scheme has enabled them to purchase their first home many years in advance of what they would’ve been able to otherwise given the fact that banks are now requiring a 20 per cent deposit. It’s taking people in Sydney up to ten years to save for that deposit so the First Home Loan Deposit Scheme with a government guarantee, allows first home buyers to get into the market – just like Fenicia and her family – with a deposit of as little as 5 per cent.
On Budget night, the Morrison Government was very pleased to announce an expansion of the First Home Loan Deposit Scheme. An additional 10,000 places from Budget night all the way through to the end of the financial year with one additional requirement and that is that first home buyers use it to purchase a new home. A new home, just like the McDonald Jones home behind me, because in addition to supporting first home buyers into the market, we also are critically keen to ensure that we have a tradie-led recovery and that an additional 10,000 homes are built between now and 30 June with the support of the First Home Loan Deposit Scheme.
I’m also very happy to have met today, Mikael, who is behind me. Mikael has been the recipient of a HomeBuilder grant, $25,000, which the Morrison Government put in place in June, again, to support the residential construction industry. Since HomeBuilder has been in place, we’ve seen a 61 per cent increase in new home sales according to the Housing Industry Association. We’ve seen a record 22 per cent increase in finance for new homes which is the highest that it’s been for over a decade and we are seeing evidence around the country of builders having a nice problem to deal with and that is so much demand, so many customers wanting to take advantage of HomeBuilder that they’re struggling to keep up with that work. In the midst of a pandemic, I think that’s a really good problem to have.
So the Morrison Government – whether it’s supporting first home buyers, whether it’s supporting the crucially important residential construction industry – is keen to ensure that we continue making strides in the right direction to ensure that all Australians have the opportunity to purchase a home and the up to one million Australians who work in the residential construction industry can have security in their jobs. We know that the eco-system of people who work in residential construction is far and wide, all the way from the timber mills who make the frames and the trusses for some homes (not all) to the tradies who are on-site pouring the slabs, the bricklayers and the carpenters and the like. So, the Morrison Government will continue between now and the May budget, to support the industry and support first home buyers through the First Home Loan Deposit Scheme and through HomeBuilder and again, I want to thank the McDonald Jones team for having me. And I might just ask Mikael, if you wanted to step-up. Mikael is an applicant under the HomeBuilder program and will just give a quick minute about what the HomeBuilder grant has meant for enabling him to purchase a new home.
Mikael (HomeBuilder applicant):
It’s a great initiative that gave me the opportunity to purchase a new home and get my foot in the door in the market. Sydney is pretty tough to compete in when you’re first starting out, but a $25,000 grant does go a long way.
Minister Sukkar:
Good on you, Mikael. And Fenicia do you feel comfortable just saying a couple of quick words on the First Home Loan Deposit Scheme?
Fenicia (First Home Loan Deposit Scheme guarantee recipient):
We are very happy and grateful for this scheme. It means that even with two children and bills coming in, we are able to buy a home. The bank has helped us a lot and it made the purchasing easy and fast as well to help us get to our goal.
Minister Sukkar:
Thanks, Fenicia. Very well said.
Well thank you, I think that probably ends it there so again, Steve, can I thank you for having us today.
Steve Hearn:
Thank you, Minister.
Minister Sukkar:
Mikael and Fenicia, we really appreciate everyone’s time. Thanks very much.