The new- build market blitzed in 2020 thanks to the HomeBuilder grant – so what does that mean for you in 2021, especially now the grant is ending?
Last year, we saw massive demand for new homes in Queensland, despite all the doom and gloom warnings of the pandemic effect.
The 2020 boon is almost entirely due to the Government’s HomeBuilder grant, which offered a $25,000 cash boost to new home builders and renovators paying under $750,000 for their home.
New builds skyrocketed, and now we’re seeing the effects in 2021
Master Builders Deputy CEO Paul Bidwell stated, “Close to 30,000 new dwellings are expected to be built in Queensland during 2021 – this is almost 60 per cent more than we projected back in April 2020, before government stimulus came into play,”.
In fact, Queensland came in second for the most HomeBuilder applications, beaten only by Victoria.
It’s clear the scheme has been a success, but it’s also created an overload situation for the construction industry, who now have a backlog of contracts to fill for expectant homeowners.
Let’s look at how it’s all going to affect you over the next 12 months.
First, are we going to see the same building momentum in 2021?
Most likely, yes.
While the HomeBuilder grant was instrumental in buoying the construction industry during the uncertain pandemic months of last year, it isn’t the only factor in play.
- More sun-seeking people are relocating from Melbourne and Sydney to Queensland than ever before. The spike in property purchases is driving up prices for established buildings, but hasn’t had the same frenzied effect on the prices of new home builds.
- Interest rates are still at record lows, making it easier for homebuyers to qualify for and maintain a loan.
- New home builds are still proving to be more affordable options, with the bonus of being totally customisable with no hidden costs. New estates provide excellent infrastructure and amenities for great lifestyle with a location that’s still convenient to Brisbane city, Gold Coast beaches or other regional hubs.
This is a point that shouldn’t be overlooked. Building a new home means you can choose the when, the where and the what of your house, all within a set budget. It isn’t driven by demand the same way existing properties are.
You certainly won’t be in competition the way others are for established homes.
That could mean 2021 is your best year to build: economic certainty is up, the property market is strong, interest rates are low, and the construction industry is thriving.
What should you be wary of?
Of course, the unexpected popularity of new home builds has maxed out the construction industry, which means the wait times for breaking ground are longer than usual.
If you have applied for the HomeBuilder grant, you might find there’s a delay in approval due to the number of daily submissions. As long as you meet eligibility criteria, have submitted all the paperwork, your application is in before April 14, 2021 and your contract is signed prior to March 31, you should still be in the running for the grant.
Having said that, there’s still time to nab the grant before it expires. For fast help, you can contact us to see the range of homes we offer, and move forward in time to apply for the $15,000 HomeBuilder grant.
What should your first steps be for 2021?
First, be aware that construction lead times are longer than usual and factor it into your situation. However, we’re typically able to fit our clients into the schedule earlier, if you act fast. Browse our range of homes, or contact us directly for a hand in getting the process started.
With the world recovering from 2020 and uncertainty around the rise of interest rates, it’s a good idea to determine your borrowing power and lock in a rate while it’s at rock bottom. And, of course, do it while new home builds are an excellent and affordable option in a surging property market.
You can also check your eligibility for the First Home Owner’s Grant, the Stamp Duty Concession, and the First Home Loan Deposit Scheme, all of which can save you tens of thousands on your new home.
Contact us for a friendly conversation about a new home build.
