State Government to give $20,000 to WA home builders

 

The $20,000 Building Bonus

BUILDING a new home will become even more affordable with the State Government announcing a $20,000 Building Bonus grant on June 7.

It will be available to any home buyer who wants to build a new house or buy a new property in a single-tier development, such as a townhouse, before construction is complete.

When combined with the Federal Government’s HomeBuilder grant, people looking to build could have access to $45,000 in assistance, $55,000 if they were also eligible for the First Home Owner Grant.

A grant for renovation work was not included in the scheme.

The Building Bonus grant is part of a $125 million Building Bonus package to boost activity in the residential building sector, stimulate the economy and support about 2600 local jobs.

$117 will be put towards the grant while $8.2 million will be allocated to the expansion of the 75 per cent off-the-plan transfer duty rebate scheme.

Like the Federal Government’s HomeBuilder package it will run from June 4 to December 31, 2020, unlike that scheme it will not be means tested and has no cap on the property value.

The UDIA WA was first cab off the rank to welcome the new package.

Chief executive Tanya Steinbeck said the State Government had acted decisively and precisely, not only addressing house and land, but expanding the 75 per cent off-the-plan transfer duty rebate, capped at $25,000, to include purchases in multi-tiered developments already under construction in addition to pre-construction contracts.

“They have demonstrated a detailed understanding of the mechanics of the market, and the grave situation the housing construction industry was facing in the coming months without government support,” she said.

“Importantly, in addition to the multiplier-factor of jobs in housing construction, this stimulus package guarantees more jobs as civil construction works can now commence in earnest across the metropolitan area in order to provide a range of titled land lots for buyers to build their dream home.”

Ms Steinbeck said there were 5,000 land lots available across the metropolitan area over the coming months, combined with a diverse range of new home designs that provided the ultimate housing choice for those looking to take advantage of extraordinary economic circumstances.

Master Builders WA executive director John Gelavis said State Government’s stimulus package, which also included a Social Housing Economic Recovery Package, was a gamechanger and would turbocharge the residential housing and construction industry in WA.

“This is a massive lifeline for our embattled housing and construction sector and brings much-needed relief to the industry and the many small businesses within it,” he said.

“The housing industry in WA has declined over 60 per cent since 2014 to disastrous levels.

“The industry is too critical to the state economy to let collapse; this package will help rescue many businesses such as mum and dad builders, large builders, subbies, manufacturers, suppliers and apprentices and will keep thousands of people in work and thousands of West Australian families financially secure.”

Reiwa may disagree with the building bonus; while understanding the need to support jobs, president Damian Collins previously said the similar HomeBuilder scheme, which was skewed towards new builds, would encourage more building on Perth’s outskirts and hurt those who could least afford it.

The State Government’s Housing stimulus also included a $319 million Social Housing Economic Recovery Package.

Mr Gelavis said it hit the nail on the head, refurbishing 1500 homes, building and purchasing approximately 250 new dwellings and delivering a regional maintenance program to 3800 homes.

“In doing so it creates and supports about 1700 jobs, with 780 of those jobs in regional WA,” he said.