Builders are coming up with their own solutions to help address the housing crisis, as Victoria’s housing market struggles to ramp up to a government goal of 80,000 new homes being built a year.
From developer giants such as Stockland to home builders including Fairhaven, there are multiple offers on the market for buyers in Victoria looking to get on the property ladder.
Recent Australian Bureau of Statistics figures showed building approvals were down 3% for the month in August, a pace that would see Victoria would fall short of its 80,000 new homes target by 25,000 homes in the next 12 months.
The bonus incentives are a way to help first-home buyers struggling with initially securing property in an environment rife with slow approvals, high interest rates, high rents and a high cost of living.
MORE: Victorian first-home buyers offered $60k discount on house and land packages
New housing estates in Victoria could see a boost with enticing offers from developers and builders, with Stockland's First Home sale enabling savings of up to $70,000.
“First homebuyers are increasingly finding home ownership a challenge. It’s a challenge to save a big enough deposit to purchase a home whilst renting, and high interest rates have reduced their borrowing capacity," said Cameron Kusher from REA Group.
“First homebuyers are feeling the pressure of interest rates and cost of living and can really use the extra support to make their home ownership dreams come true."
Here are three new-home incentives, in addition to the Government's $10,000 First Home Owner Grant, helping buyers make the jump in Victoria.
First Home sale – Stockland
Stockland's First Home sale is cutting $40,000 from the cost of a block of land and offering an additional saving of up to $20,000 through its builder partners for eligible house and land packages. These include major builders Simonds Homes, Henley Homes, Metricon Homes and Homebuyers Centre.
When coupled with the First Home Owner Grant when buying or building a first new home, Victorian buyers can save up to $70,000 – sweet relief in tough conditions.
Stockland is offering a $60,000 discount on house and land packages at estates around Victoria, including their Lyra development in Beveridge to Melbourne’s north. Picture: Supplied
David Allington, General Manager Communities, Stockland Victoria, said the initiative was designed to make home ownership more attainable and allow first homebuyers to get into the market sooner.
“The First Home sale will help first-home buyers enter the market and, when used alongside the Victorian Government’s $10,000 First Home Owner Grant, first-home buyers can save up to $70,000,” Mr Allington said.
The offer will apply to more than 100 house and land packages across Stockland's Victorian communities, with two- to four-bedroom homes running at reduced prices between $400,000 and $650,000 — most in the middle of that range.
The majority of homes will be single storey in order to guarantee completion by Christmas next year, and the offer is currently available until mid-November.
MORE: Your own backyard: First-home buyer-friendly houses for under $700k
Build time guarantee – Fairhaven Homes
Another hurdle faced by would-be home buyers is the balancing act of renting until they are able to move into a new build. In instances of delays, the need for short-term accommodation can cause an unexpected blowout to a buyer's bottom line.
Fairhaven Homes analysed 18 months of work where over 94% of homes were started and completed as scheduled, with some completed up to 4.5 months ahead of schedule.
A full Fairhaven crew on-site when building Sasha and Kishani's Victorian home under their construction start time and completion guarantee. Picture: Supplied
As a result, Fairhaven is offering a guarantee on construction start time and build completion for its Simplicity, Bridgewater or Elegance homes.
Based on Fairhaven’s research, there are significant savings to be had if a builder completes a project ahead of time – with those renting while waiting for construction able to save up to $10,000 plus in some instances, where the builder met agreed-upon timeline milestones early.
"Providing that guaranteed window of when construction will commence and complete goes a long way in providing peace of mind around the everyday budget, particularly for any cost on accommodation ... you’ll know how long the process can take, so you can plan accordingly,” said Benjamin Smarrelli, General Manager at Fairhaven Homes.
"Based on our track record, we’re confident in providing guarantees to every new customer [and] we’re committed to delivering on our promises with build times, upfront and fixed pricing."
Fairhaven is offering a guarantee on construction start time and build completion for its Simplicity, Bridgewater or Elegance homes. Picture: supplied
MORE: How much does it cost to build a house in 2024?
Free site costs – Sherridon Homes
New home builders may not realise that site costs, such as clearing and preparing land for construction, are expenses typically charged on top of the base house price.
Sherridon Homes is removing that from the mental and financial load with an offer that includes free site costs for their New Living Collection homes, and could save homeowners tens of thousands of dollars.
"Absorbing the uncertainty of variable site conditions ultimately provides peace of mind to our customers who are concerned about hidden costs and lowering the barrier to entry for new home construction would make building a new home more affordable during these challenging times," said Sherridon Homes general manager of metro sales Simon Mandragona.
Sherridon Homes is removing site costs associated with prepping land for construction on their New Living collection. Picture: Supplied
"For example, clients who have purchased land with up to 600mm site fall over the block area would save approximately $14,990 to $18,990, based on the size of the home."
The promotion includes all earthworks, up to 600mm of site fall, all rock removal, up to an H2 class slab, fully bored concrete piers and up to 1000mm of fill.
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