40k incentive to build your dream house
BILOELA’S rental market may not stand to gain from a proposed new home buyers grant.
Both the real estate and construction sectors are calling on the Federal Government to install a $40,000-$50,000 payment to any buyers of newly built homes.
The Property Council of Australia and Master Builders Association (MBA) have put the grants forward to the government in an effort to kickstart construction for new housing, generate jobs and boost consumer confidence.
Ray White Biloela principal agent Mark Simpson said that whether or not the new home buyers grant of $40,000 or $50,000 is implemented, it won’t make a great impact on the Biloela housing market.
“When you have a number of existing homes in Biloela to purchase people aren’t going to build.
“The positive thing out of that is there are some blocks available now under $100,000 so there would be some opportunities but not many.
“You can drive around here and see not many new homes are being built now because there’s plenty of existing homes listed for sale which are at lower replacement costs.”
MBA Central Queensland regional manager Dennis Bryant said that a study by the MBA showed that a $40,000 new-home buyers grant needs to be introduced within a month to save up to 100,000 jobs across the state in the construction sector.
“Right now things are fluid in Central Queensland but if we don't keep getting contracts signed we may see a drop off in the building industry which we expect in October,” Mr Bryant said.
“You could have someone in Biloela thinking do I or don't I have the money to build a new home and $40,00 would make a big difference to the construction of a new home.
“Especially in the lower end of the building, if they already have land that could push them into doing something now and instead of sitting there thinking they can't afford it.
“The problem is people are covered about their level of income in the next 6-12 moths and it's that hesitation that will see us into a slump.”
At the start of the year 252,000 Queenslanders workers relied directly on construction for their employment.
Latest figures from the Australia Bureau of Statistics indicate that 12,900 in Queensland have been lost since the start of COVID-19.
Mr Simpson added he has seen no indications yet that determine we may see a decline in residential house values in the next 12 months following the pandemic.
“We’ve still got people wanting to buy and sell right now,” Mr Simpson said.
“There are buyers and sellers active in the market and there’s transactions happening.”
Mr Bryant said that with a low level of rental vacancies in most areas of Central Queensland, now is the time to build more houses to cater for the demand and give greater incentive to build a new home and not just by an existing one.
The MBA Grant In Brief
- The $40,000 grant would be available to any individual or family building a new home
- Ideally there will be no maximum or minimum cap put on the size of home built or total spend (most new-builds cost between $250,000 and $500,000).
- The grant can be used on anything in the build, ie upgrades or after-build costs such as landscaping or installation of pool, as long as it is in the contract.
- The grant would be in addition to any other government funding, such as the first-home owners grant.