Is now the time to sell or buy a block of land?
This month brought welcome news the Government is set to spur on Australia’s construction industry courtesy of a HomeBuilder Grant that encourages both new builds and major renovations.
For those who may have been considering selling land over recent years, it begs the question is now the time to sell?
And of course, for those in the market to buy, it’s prompting them to ponder whether now is the time to take the plunge, buy land and build their own home.
From what we’re seeing on the ground at imsold, the answer is “yes” to both questions. So, let’s take a look at what’s going on in the land market, along with how the HomeBuilder Grant works.
HomeBuilder in brief
HomeBuilder sees eligible owners/occupiers offered a $25,000 grant to put towards either significantly renovating their existing home or building a new property.
The grant comes with a couple of caveats:
- It’s only open to individuals who earn up to $125,000 per annum; or couples who earn up to $200,000 per annum
- It can be used to build a new home as a principal place of residence, where the property value does not exceed $750,000, or
- It can be put towards substantially renovating your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million
- Applicants must enter into a building contract between 4 June 2020 and 31 December 2020
Demand so far
Within four days of the HomeBuilder Grant being announced by the Federal Government, over 8000 people had already signed up for the initiative, according to News Corp.
Anecdotally, local mortgage brokers also reported a run on inquiries about construction loans over the weekend following the grant’s announcement.
That means demand for the initiative looks set to be high.
In the meantime, first home buyers who are looking to build their home are also eligible for other initiatives in addition to HomeBuilder, including the First Home Loan Deposit Scheme and the Queensland Government-backed First Home Owner’s Grant of $15,000.
Is it time to sell my land?
If you’ve been considering selling a spare block of land, it would appear now is indeed the time to consider placing it on the market.
Bear in mind, that HomeBuilder is restricted to properties valued at $750,000 or less. In other words, it looks at the final total of the land value and the build when gauging whether someone is eligible for the grant.
Meanwhile, land in the Noosa region is notoriously short in supply, particularly in popular established areas like Tewantin, Noosaville, Sunrise Beach, and Peregian Beach.
Is it time to buy a block of land?
If you’re considering buying land and building a home that together is valued at $750,000 or less, we would argue this is a great time to purchase.
In addition to the HomeBuilder Grant, interest rates are at an all-time low and if you’re a first home buyer there are a wealth of other financial incentives you can access.
Just note, that time is of the essence here as a building contract must be entered into by the end of the year in order to receive the HomeBuilder Grant
We’d love to assist
If you’re looking at buying or selling land, we’d love to assist and you can contact us directly here.
In the meantime, we also have a large portfolio of properties for sale, and don’t forget HomeBuilder also applies if you’re considering substantial renovations.