WA - total 45k grant for new builds - market impact

Hi All,

WA has announced 20k cash grant from state on top of 25k by federal. For first home buyer, its even sweeter - additional 10k. All 3 grant has different eligibility criteria.

What kind of impact it will have on property market? Which area will move? Lets discuss all aspects.

Personally, i feel that this will help mainly land estates and builders. So we will see lot of activities in FHB segment. This is going to drive price for new homes without doubt. Builders and land estates will increase their price too. I think it will impact established home market negatively i.e. prices will go down.

Also, as a property investor, how we can take advantage of this ? In my view, if we develop, it will help us in selling off-the-plan and will realise higher end value due to grant which is going to put more people looking to buy. Its going to shoot up prices of development sites too. However, developers need to be quick to take advantage of it.

Tagging @MTR , @Westminster , @Aaron Sice , @Perthguy , @thatbum , @theperthurbanist to get discussion going.

 

Yes the $45K combined grants plus stamp duty exemptions will be a game changer. I've a few vacant lots for sale and I've had multiple enquires so I'd say any available titled lots will be snapped up as word gets out.

 

You will be rewarded as vacant land seller. So will be builder. May be not extra ordinary profit but it will keep sell and construnction happening.

 

I heard that the new outer estates to our north were insane yesterday with enquiries. So I would assume they will experience even more hurt for people trying to sell established homes out there.

Me personally, I am going to subdivide and move into the new build. $45k covers my subdivision costs. However I am chatting today with someone to confirm this meets the criteria as titles won't issue and technically I am not building on new land.

 

Can you please post the answer to this! I’m considering building on the back of my husband’s IP and selling the house we are in. I started getting rough quotes since December. I’m expecting build prices to be up a bit. Hopefully I’d get a reasonable price for my existing home as there is very few vacant blocks in the area.

 

I did not realise I may be eligible for this? I have triplex site that I was planning to develop

 

As far as I can tell you will be eligible for $20k per dwelling construction on each vacant lot - my interpretation of this is that you will need to be demolished and survey strata before you would be eligible.

Apply for a new home construction grant | Western Australian Government

 

apparently need to have signed build contract by December

I have a tenant in the property signed lease for 12 months, perhaps I could negotiate something here

 

A massive game changer, I expect this market to do very well

 

This could be an $85,000 windfall for my project??

i also expect this takes a great deal of risk out of the equation

 

Why $85k?

 

$20k for each of the three and a $25k extra if one is a PPOR?

I am now dubious on carrying out my subdivision, I don't think there is enough time to get it to a point where I qualify for both grants.

 

My mistake
Only $60,000

this means 3 separate build contracts, 3 villa site

 

Can you please list the 3 grants for 20K each?

 

Why is that? I've had soil test, survey of entire block done and choosing between two designs. Town of Bassendean. Do you think I would make it.

 

For WA grant you need to have it signed off by builder by December 2020

 

This is just going to steam-roll the established markets for FHB-priced areas for the remainder of this year. I guess it just delays any potential recovery for these areas until 2021 at the soonest. But what a time to be building a PPoR...

 

I am in several minds since these grants have been announced..whether to take advantage or not.
The following options all relate to our PPOR however we would like to select an option with an "investment minded" cap on.
Option 1: Demo/build
We are eligible for 45k which will cover demo and site-works and would probably build with Ross North approx a 280sqm 300k house.
Benefits include: designing "ideal floor plan", higher and feature ceilings, new home and more suitable location on the existing block.
Option 2: Extensive Renovation
We could continue with our renovation plan which has been designed and quoted at 230k. If we fast tracked at least 150k of works we would be eligible for 25k.
Benefits include: Continue living in the premises, reduced overall cost, larger home with 3 car garage approx 380sqm still 1972 house.
Option 3: Do nothing, miss out on the grants, enjoy life continue to slowly renovate as planned or do minimal necessary renovations to one day knock down.

 

I guess my question is..if you were in the same boat, what would you do?

 

What suburb??