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

Can confirm Dale Alcock and Celebrations have increased the price of their new builds by as much as 10k.
Ross North have maintained pricing that i enquired about a month or so back.

 

Hmm. Thanks for that. Probably less willing to negotiate too now I imagine...

 

I know the phone calls would hardly ring once pre state and federal govt stimulus announcements and now often finding voicemails..

 

Ah yes, and I like storage too obviously! Probably half the reason I hate not having a garage. There is also this loft storage section in the addition. God only knows what I’ve got hiding up there! Tonka Trucks, rental property advertising signs and cr@p I don’t need. My friends built a triple garage home with Ross North. It’s gorgeous!

 

Perhaps during this pandemic is a good time to investigate and clean it out! Haha
Oh I haven’t seen any triple garage designs, I must find one before putting pen to paper. They’re building a lot in my area and they look great.

 

Those must be in sub $1m areas. Where I am looking, the market is pretty lifeless. I think there has been 1 new listing in my search category in 2 weeks and in general listing prices are still or grinding down.
As an aside, in Domain's auction results for last week, half of the results they included in the areas around me were from more than 2 weeks ago, which is super fishy...

Ignore me!!!! I am in Melbourne and missed the thread title

 

Looks like the land developers are starting to remove the buyer rebates on lots so incentives removed land is getting more expensive. Some developer may try to clear older stock before removing incentives but new land releases will not have the same buyer/builder rebates

 

I was chatting with one builder rep and he's been in the game 25 years and during boom times and he's seen nothing like the inquiry since the multiple grants were announced. It will be interesting to see if the enquiry turns into settled deals as we still need the banks to come to the party. This is a small window to get deals signed, approved and constructed so builder reps and land sale reps will have to be very careful on which clients to take on as many will be unable to get finance.

 

Apply for a new home construction grant | Western Australian Government
Can I get more than one grant?
A grant is available for each new home built or purchased as long as the homes are on separate land titles. Only one grant will apply if more than one new home is built on a single lot.

So if you wanted 3 grants you may need to do a survey strata first. So you'll need to apply to WAPC for approval and then get clearance from Watercorp put in electric dome etc. Have a chat with a surveyor to see if it is doable in the timeframe, it may be worth it to get the $60K as you would need some items for the build anyway?

 

Its bit confusing. Below is mentioned in
Building a new home on a single-tier strata plan section at
https://www.google.com/url?sa=t&sou...Vaw3n0Z0ji1bDaE0SFGjY3HLP&cshid=1591822875527

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To be eligible, you must be the registered owner of the land on which the new home is built and you must be the buyer named in the off-the-plan contract or an eligible transferee
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I think "or an eligible tranferee" gets it over the line for people who are planning to sale strata lots and starting subdivision process now. If you start your process now for survey strata, its going to take at least 5 months- may be more - before you get titles. But if you are "eligible transferee", you can sign contract to purchase land and construnction when titles are available.

 

Look at - Apply for a new home construction grant | Western Australian Government

Check for "single-tier Home" in Examples section in "Building a new home on a single-tier strata plan". It has clearly given example of off-the-plan sale.

If grant is available to OTP buyer(example says titles were done in 2021), i think as owner of strata lots, MTR will certainly be eligible. I think they have not given example as it will not be applicable to most of people applying for this grant. But looking at intent of the scheme and wider eligibility criteria, MTR should be eligible.

This grant is to be applied and payable after construction is completed and property is settled.

 

Yes so that is the example I was referencing when I mentioned that a buyer would be eligible. It's so hard with little guidance, does an example mean that the opposite is not possible or that there are 2-3 ways to make built strata work and this is one of them.
Until it's goes through Parliament I am basing my interpretations on what little information we have which makes it hard to make business decisions based on that.

 

My view is that example is there to demonstrate the most common scenarios and it does not mean opposite is not possible. They cant list each and every scenario. Intent of the scheme is to promote building activity - irrespective of who is building.

There is no timeframe imposed for subdivision, timeframe is only for construnction contract date and construnction start within 6 months of contract date. I would say that intent of the scheme is to specifically include small strata development in addition to house and land package.

 

I have problems reconciling these 2 statements, I read the first to mean that built strata = more than one new home is built on a single lot. However maybe they are referring to someone who builds a house plus a granny flat - thought that would be even more niche qualification than built strata. Or could it just be talking about people that get a built strata DA, build but keep them on one title and never subdivide and therefore it is more than one house on a lot.



and

 

They are not contradicting. They describe 2 scenarios. Basically, government wants to give grant to only title holder. As per example given for off the plan sale, it does not matter if buyer of OTP sale becomes title holder in 2021.

 

hey we are planning the exact same thing, to build and move into back. Does this still qualify ?

 

Hi @MTR , is it worth selling subdivídable property now for a developer / investor to pick up? Will they make it on time to subdivide and sell off proposed lots by December? Curious to know if I can get rid of one of my ip’s as I dnt see myself proceeding with the development

 

I am still confused? My understanding is you need to sign up with a builder by 31 Dec 2020 and start building Within 6 month, payment made when concrete poured
Whether I can access for the 3 builds or 1 not sure? More info to come over the next 3 weeks been

 

I spoke with a big builder on Saturday and they said if you don’t have a seperate title already just forget it, you won’t have a seperate title to get $20k grant by end of the year. Said they had been telling people that all day. I’m not too sure whether to believe it but I guess the short timeframe is going to be crazy. Especially considering FHB’s lining up in outer estates to buy land. Then there is people who applied to subdivide before the announcement, waiting for seperate titles. It appears if you are selling off the plan it buys you more time.?!? I’m guessing they may need to extend timeframes as it’s sounding messy from a few angles but you can’t rely on that. Extra workloads over a short period of time, than nothing...Just my thoughts, I could be wrong!

 

There are people making speculative buys in case they can get multiple grants but not sure if they are paying more than what was pre-grant market value

I have seen a few people put up some sites that have previously been advertised and sticking a slightly higher price on it but not sure if the market is going to play