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

Discussion in 'Property Market Economics' started by Rooky, 7th Jun, 2020.

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  1. JKB

    JKB Well-Known Member

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    Thanks, just asked to get a clear idea of that $/m2.
     
  2. JKB

    JKB Well-Known Member

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    I am shopping around with small to medium size builders. TBH at the moment builders have quite a few people signed with PPA’s that they are not motivated enough to give a generous quote to someone with set of plans who is shopping around. My quotes vary from 190k to $250k, I am comparing inclusions and exclusion in each quote at the moment. One of my workmates is building with Redink in a new state down Mandurah way, he has quote of $290k for 300sqm under roof with Aircon and Solar panels included that gave me an impression that my quotes were high but after taking all factors mentioned above in account it’s not that bad.
     
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  3. MTR

    MTR Well-Known Member

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    Have you looked at Summit, I know someone who used them, competitive and they were very happy
     
  4. JKB

    JKB Well-Known Member

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    No I haven’t contacted them yet, I will get in touch with them and get a quote. Thanks!
     
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  5. D3xx

    D3xx Well-Known Member

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    How is the situation looking with grants? There was some question as to the timelines being impractical.
     
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    They now allow 3mth extensions for certain reasons - builders taking on too much work and not getting slab down in time is NOT a reason for extension being granted.

    Apply for a new home construction grant | Western Australian Government
     
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  7. JKB

    JKB Well-Known Member

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    To anyone who might be interested, I got my grants (home builder+ building bonus) approved yesterday. Slab for my house was poured at end of August, I submitted my application at start September so it took one month to get approved. I am so excited, builder expecting to finish it by February next year!
     
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  8. Rooky

    Rooky Well-Known Member

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    Has anyone got some clarity regarding whether multiple grant possible if you are doing single tier development i.e. triplex or duplex development ?
    According to below excerpt from Building Bonus FAQ section of WA government website, grant is per dwelling. But i am looking for some clarity, better still if someone has got multiple grants and can confirm it.

    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.

    Rooky
     
  9. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It is my understanding that yes you can get multiple grants if you are holding the project, ie if you sell it off then the new owner may be eligible.
    There are a few built strata type examples on the OSR website where you apply for the grant on the transfer of titles at the end of the build (not at slab down as you don't have separate titles then).
     
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  10. Rooky

    Rooky Well-Known Member

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    I am concerned about number of housing being built up under grants and its market impact going forward. Last week, i got email from RevenueWA about processing of building grants application. In that, it was mentioned that in December alone, there were 16000 applications submitted. I was alarmed by that number because in WA, in 2019 calendar year, according to ABS data - only 15K dwellings were approved for building. Same ABS data shows that in 2020 calendar year, only 18K dwellings were approved for building. If ABS data is correct, then from where did RevenueWA got their 16000 applications in December number ? Surely, not everyone has applied in December.

    Does anyone know why there is difference in data ?

    ABS data - https://www.abs.gov.au/statistics/i...ding-approvals-australia/dec-2020/8731005.xls

    RevenueWA email -
    Thank you for lodging your Building Bonus and/or HomeBuilder grant application.
    We have received an unexpectedly high volume of applications - with over 16,000 lodged in December alone. Additional staff are being employed and our processes have been streamlined, however there are still delays in payments being made.

    We apologise for the inconvenience, but please be assured we are working to pay the grants as quickly as possible. You will be notified by email once your application is processed.

    Rooky
     
  11. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I got the same email. I think they are doubling up, ie most people applied for both so might only be 8000 applications but still much higher than I thought.
    Those 8000 will be most of the construction for 2021 though as it will take them a good 9-12mths to work through it all
     
  12. Rooky

    Rooky Well-Known Member

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    Doubling up makes sense.
     
  13. Rooky

    Rooky Well-Known Member

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    Found answer here. Total appx 13000 grants applications in WA under Homebuilder scheme as on 12th March.

    HomeBuilder | Treasury.gov.au
     
  14. Propin

    Propin Well-Known Member

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    I guess if you don’t have DA approval yet it would be near impossible to get the grant?
     
  15. mickyyyy

    mickyyyy Well-Known Member

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    Congratulations! Where you building?
     
  16. JKB

    JKB Well-Known Member

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    Hi
    I have built in Embleton my house is completed.
     
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  17. JKB

    JKB Well-Known Member

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    There are so many people out there who just applied for sake of applying, they have signed a contract when they are not sure if they can pull it off or want to build. I think this scheme could have been handled better than it was but I can’t see Perth market slowing down for at-least another year. I had a feeling last year when grants were announced that they will kill the established houses market but I was wrong and happy to be wrong.FOMO has well and truly kicked in and buyers are making new base everyday for Perth market.
     
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  18. Propin

    Propin Well-Known Member

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    Really? Why would anyone do that?
     
  19. Rooky

    Rooky Well-Known Member

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    I think that happens with almost every government scheme open to public. People just want to get in with idea that they will sort out other requirements later. So many thing happens in life after initial application and end date for meeting eligibility criteria, priority changes in life etc.
     
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  20. Propin

    Propin Well-Known Member

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    True. A lot has happened in the past year!
     

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