Premier Jay Weatherill and Treasurer Jack Snelling have announced a new Housing Construction Grant for everyone building a new home, which will take effect immediately.
Under this new grant, homebuyers can receive $8500 for a new home regardless of whether it is their first property until June 2013. First home owners building or buying a brand new home will be eligible for $23,500.
“This new grant and reforms to the existing first home owner scheme will provide an urgent boost to the state’s housing construction industry and help stimulate the property sector,” Mr Weatherill said.
“The number of new dwellings built in South Australia declined by 18 per cent in the last financial year.
“The property market is soft and the housing construction industry is doing it tough.
“As a Government we need to put in place measures to give confidence to the industry and get more South Australians buying or building a new home.”
The reforms include:
• Creating an $8500 Housing Construction Grant for all buyers of brand new homes, regardless of whether it is their first home until 30 June, 2013. This will apply to properties with a value up to $400,000, and will phase out for properties valued up to $450,000. This replaces the existing $8000 First Home Bonus Grant.
• Increasing the First Home Owners Grant from $7000 to $15,000 for first home owners who build or purchase a brand new home. This is ongoing.
• Reducing the First Home Owners Grant from $7000 to $5000 for first home owners who purchase an established home up until 30 June, 2014, when it will expire. This is a deliberate push to target jobs in the housing construction industry.
Treasurer Jack Snelling said together with the Government’s Budget announcement of stamp duty concessions for off-the-plan apartments in the City and Riverbank precinct, eligible first home buyers could receive up to $39,830 in State Government assistance.
“The property market is facing a range of issues which are affecting the housing construction industry and the jobs that go with it,” Mr Snelling said.
“Without this new assistance, South Australia’s new home starts are forecast by the Housing Industry Prospects Forum to fall a further 10 per cent in 2012-13.
“There has never been a better time for South Australians to build a new home or buy an off-the-plan apartment,” Mr Snelling said. Legislation will be introduced to State Parliament this week to effect these changes. In the meantime, an ex-gratia scheme will be in place.
In addition to this, shared equity which can allow you to save up to $105,000 on your new home makes buying a new home more affordable than ever.