The federal government’s HomeBuilder stimulus package needs to be extended and expanded to allow more people to take advantage of the scheme, according to a leading property developer.
HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020. Construction must commence within three months of the contract date.
Since HomeBuilder was announced, KDL Property Group’s residential housing estates in South East Queensland had benefited from a 100 per cent jump in inquiry, managing director Kent Leicester said.
However, he believes that the time-limited grant program needs to be extended because of the difficulty for applicants to qualify by the 31 December deadline.
Further, there remains confusion about eligibility and access for the grant.
“I think the program will need to be extended beyond 31 December and also more clarification provided in regards to eligibility,” Mr Leicester highlighted.
“It’s proving to be very difficult for applicants to have everything locked in within such a short time. If people can’t [lock down] a time for construction to start on their new home or renovation, then they could miss out.
“Buyers are also confused about how to access the grant and whether they can use it towards a house and land package like they do with a first home owners’ grant, or if it gets paid out later to assist with construction payments”.
Due to the HomeBuilder stimulus, the response from first home buyers has been huge upon taking the project to the market, according to Mr Leicester.
“Despite the economic uncertainty as a result of the COVID-19 pandemic, we believe they have been attracted due to HomeBuilder stimulus, which when added to state government funding gives them a $40,000 head start,” he said.
Ultimately, HomeBuilder was helping build sales for developers in new estates on registered or soon to be registered land, he said.
“Our Hampton Pallara estate will have land registered in September, meaning builders can start construction in October, which is well within the 31 December 2020, timeframe to qualify for HomeBuilder,” he said.
All 61 blocks in the Hampton Pallara estate will be levelled and range in size from 400 square metres to 541 square metres, many with frontages of up to 17 metres.
KDL has house and land packages available in Hampton Pallara as well as a select number of dwellings under construction that will be sold as finished and completed homes. Land is priced from $315,000.
“Pallara is a thriving community which has been named as one of the most family-friendly suburbs in Brisbane, with almost 25 per cent of residents aged 14 and under,” Mr Leicester concluded.