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The Tasmanian state government has kicked off a financial assistance package for around 50 property buyers left in limbo, after two construction companies went under.
In recent months, construction companies Inside Out Construction and Tasmanian Constructions, which traded as Hotondo Homes, have entered administration in Tasmania.
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The pair reportedly left 50 customers in the lurch, with around 40 waiting on homes to be built by Hotondo Homes.
The liquidator assigned to Tasmanian Constructions told The Adviser that around 10 of the affected customers had partially completed homes, while 30 were yet to commence building.
The Tasmanian government’s new package will enable:
- Property owners with an incomplete building project to claim up to 20 per cent of the contract price, up to a maximum of $200,000
- Property owners who have paid deposits but where work is yet to commence to claim up to 5 per cent of their contract price. The Tasmanian government stated the support is in line with statutory protections that prevent deposits beyond 5 per cent.
The government also stated that any buyers conditionally approved for HomeBuilder grants will still be able to access the schemes, as if their build had not become insolvent.
The package will be available to property owners affected by the death, disappearance or insolvency of a builder since 1 July 2021.
Affected customers have been told to contact consumer, building and occupation services in the state’s Department of Justice. The division will administer the new scheme.
The state government is also working on developing a home warranty insurance scheme for implementation later in the year.
Further, the Tasmanian government recently launched $10,000 grants to support the construction of granny flats specifically to rent, with an aim to create more housing for locals.
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