If you're thinking about buying property in the Northern Territory (NT), you’re in good company. Whether you're eyeing your first home or an investment property, the NT offers a range of opportunities. With relatively affordable prices and some government incentives, it's an appealing option for many. 

Here's a simple guide to help you get started and make informed decisions. 
 

Disclaimer: This article provides general information only and is not intended as financial or legal advice. For personalised advice, please consult a qualified professional.

The NT Property Market: A Snapshot

The NT property market remains relatively stable, providing opportunities for both first-time buyers and investors. Darwin, the Territory's capital, remains the most expensive market, with median house prices typically ranging from $500,000 to $600,000. However, it still offers more affordable options compared to major cities like Sydney and Melbourne.
While in regional areas like Katherine and Alice Springs, you can find properties with median prices from $350,000 to $450,000 (source: NT Government).

In general, the NT’s property market tends to be less volatile than other regions, which is an attractive factor for buyers looking for long-term security.

Key Incentives to Consider When Buying Property

When buying property in the NT, there are multiple incentives available, especially for first-time buyers. These incentives can make it more affordable to enter the market.

HomeGrown Territory Grant: Buying or Building a New Home

The HomeGrown Territory Grant offers $50,000 for first-home buyers to put towards building or buying their first home. You can also use it for a new transportable home, as long as it’s permanently fixed and legally approved to be lived in. This grant replaces the previous $10,000 First Home Owner Grant and is available for:
•    Owner-builders
•    Off-the-plan purchases
There is no cap on the build or purchase price.
For more information see: https://nt.gov.au/property/home-owner-assistance/buy-build-new-home

HomeGrown Territory Grant: Buying an Established Home

First-time buyers can also access the HomeGrown Territory Grant, which replaces the First Home Owner Grant to $10,000 for the purchase of an established home. This applies to:
•    Houses
•    Townhouses
•    Apartments
There is no cap on the purchase price.
For more information see: https://nt.gov.au/property/home-owner-assistance/buy-an-established-home

FreshStart New Home Grant: For Existing Homeowners

The FreshStart New Home Grant offers $30,000 to buy or build a new home. It’s available to:
•    Applicants who are not first-home buyers
•    Owner-builders and off-the-plan purchases
There is no cap on the build or purchase price.
For more information see: https://nt.gov.au/property/home-owner-assistance/existing-home-owners

Low-Deposit Home Loans: HomeBuild Access

HomeBuild Access offers low-deposit home loans for new-built homes or for purchasing vacant land to build your own home. There are limits on the purchase price:
•    For properties with up to 2 bedrooms, the maximum purchase price is $475,000.
•    For properties with 3 or more bedrooms, the maximum purchase price is $550,000.
For more information see: https://nt.gov.au/property/home-owner-assistance/low-deposit-home-loans

Stamp Duty Exemption: House and Land Package

If you plan to buy a house and land package, you may be eligible for a stamp duty exemption under the House and Land Package Exemption (HLPE). To qualify, you must:
•    Buy a house and land package from a building contractor in a single transaction
•    Sign the contract between 1 July 2022 and 30 June 2027
The exemption is not means-tested and there is no cap on the property’s value.
For more information: https://nt.gov.au/property/home-owner-assistance/stamp-duty-exemption

New Build vs Existing Properties

One of the first decisions to make when purchasing a property is whether to buy a new build or an existing property. Each option comes with its pros and cons.

New Builds

New builds often come with modern designs and the latest energy-efficient features, which can lower ongoing utility costs. The NT offers a range of new home developments in suburbs such as Zuccoli, Berrimah, Durack and Muirhead just to name a few. 
However, new homes tend to come with a higher price tag. In areas like Darwin, expect to pay a premium for a newly built home compared to older, established properties.

Existing Properties

Buying an existing home can be more affordable, especially in regions like Alice Springs and Katherine. These homes may have established gardens and mature infrastructure, which can be a benefit in the long term. However, older homes might require maintenance or updates to meet your preferences or energy efficiency standards.
For first-time buyers, an existing property might offer better value upfront, though it’s important to factor in potential renovations or repairs when considering your budget.

What Else to Consider When Buying Property in the NT

Beyond the financial incentives, there are a few key considerations when buying property in the NT:

• Market Trends: The NT property market has proven to be stable, particularly in Darwin. However, specific suburbs and regions vary in demand, so it’s important to do your research on the area you're interested in.
• Affordability: The NT remains one of the more affordable states for homeownership. While Darwin may be pricier than regional areas, it’s still relatively cheaper than major cities like Sydney and Melbourne. Regional areas, such as Alice Springs, offer great value for larger homes.
• Financing Your Property Purchase: Whether you're a first-time buyer or looking to invest, securing the right home loan is key. Be sure to shop around for competitive rates and understand what works best for your financial situation. Some government-backed loans and schemes are available to help reduce upfront costs for first-time buyers.
• Ongoing Costs: Homeownership involves more than just the purchase price. Ongoing costs like maintenance, insurance, and utilities should be factored into your budget. If you’re buying an investment property, also consider property management fees and upkeep.

In Conclusion: Is Now the Right Time to Buy?

The NT offers a stable and affordable property market for both first-time buyers and investors. With government grants and concessions available to help with costs, it’s worth considering if now is the right time for you to make a move. Research the areas you’re interested in, evaluate the financial options, and take advantage of available incentives. With the right information, buying property in the NT can be a rewarding experience.
 

Important information:
This insurance product is distributed by Automobile Association of Northern Territory Inc ABN 13 431 478 529, an authorised representative of the issuer Insurance Australia Limited trading as CGU Insurance ABN 11 000 016 722, AFSL 227681. Any advice provided is general advice only and does not take into account your individual objectives, financial situation or needs (“your personal circumstances”). Before using this advice to decide whether to purchase a product, you should consider your personal circumstances and the relevant the Product Disclosure Statement and Target Market Determinations from https://www.aant.com.au