ABN Group Managing Director Dale Alcock has applauded the WA State Government following today’s announcement of a housing stimulus package set to boost WA’s economy.
“This extremely welcomed stimulus will encourage homebuyers to enter the market during the significant recovery phase of COVID-19,” Mr Alcock said.
“I congratulate and thank Premier Mark McGowan for listening to the industry and implementing a generous, practical and flexible stimulus that will allow more West Australians to access the housing market during this crucial time.”
“This incentive will ensure a quick housing recovery and support local jobs in our residential construction industry.”
“Importantly, housing construction will have a multiplier effect on WA’s economy, so the announcement really is a much-needed boost at the right time,” he said.
The $117 million package – dubbed the ‘Building Bonus’ – offers West Australians looking to build a new home with a $20,000 cash grant.
The $20,000 payment is in addition to the Federal Government’s $25,000 ‘HomeBuilder’ payment.
West Australians who are first home builders can also apply for the State Government’s existing $10,000 First Home Owner Grant for new builds as well as receive first home buyer stamp duty concessions.
The ‘Building Bonus’ grants will be available until 31 December 2020, but unlike the Federal Government’s ‘HomeBuilder’ stimulus package, the WA scheme will not be means tested nor have a cap on property value.
Mr Alcock said the ‘HomeBuilder’ and ‘Building Bonus’ initiatives were very complementary, providing eligible West Australians to take advantage of up to $45,000 in Federal and State grants, $10,000 in WA’s existing First Home Owner Grants as well as first home buyer stamp duty concessions.
“The combination of all these initiatives means that someone who qualifies for all four incentives could access up to $69,440 in Government assistance to help build their new home,” Mr Alcock said.
“This level of support is simply unheralded – I’ve never seen anything quite like this in my 30-plus years in the housing industry.”
“For West Australians who are in the position to do so, now is the time to build a new home,” he said.
Mr Alcock added he was confident that housing would bounce back quickly, with signs of improved buyer confidence.
“I am confident that housing will bounce back with the same reassuring signs of activity that we had early in the year,” he said.
“We have already started to see more home buyers returning with increased foot traffic through display homes and enquiries.”
“The added impact of the stimulus will ensure that, those in the position to do so, will be able take advantage of these unprecedented Government incentives, land availability and historically low interest rates.”
“This truly is a once-in-a-lifetime opportunity, so time is of the essence for West Australians to leap into the market and build their dream home,” Mr Alcock said.