Revenue SA’s Housing Construction Grant Extended

Great news for property investors. Revenue SA’s Housing Construction Grant has been extended until the end of the year. However we have high demand and limited stock so get in quick.

See full article from The Advertiser below…

Premier Jay Weatherill will commit $38.7 million in the State Budget to retain the Housing Construction Grant.

It was first announced last October and was due to expire on June 30. Mr Weatherill said offering the grant for longer would help remove barriers to home ownership and stimulate the construction sector.

More than 1100 people have received the grant in the seven months since it was introduced.

The full amount is available to people buying or building a new home with a market value of up to $400,000, and gradually reduces before cutting off for properties valued at $450,000.

The extension applies to contracts that are entered into up to December 31.

Hickinbotham Group managing director Michael Hickinbotham said the grant extension was a welcome boost.

“It will generate construction activity that will safeguard jobs at a time when the economy is at a low ebb,” he said.

Housing Industry Association regional director Robert Harding said the HIA wholeheartedly supported the extension.

“The HIA has been calling for the extension of these grants for three months, and we are very happy with this outcome,” he said. “It’s no secret that the residential housing industry is experiencing one of the worst downturns on record. The extension of the grants will provide much needed relief.”

Mr Weatherill said he had listened to industry and public calls for support.

“The housing construction grant is about providing an urgent boost to the state’s housing construction industry and helping stimulate the property sector,” he said.

“The construction industry has been under significant pressure.

“While there have been signs of improvement, we need to do more now to support the construction industry and the people who work in it. This is a sensible approach to provide continued stimulus to the industry while helping people with some of the costs associated with building a new home.”

The construction and development industry welcomed the extension as a critical measure to help jobs growth and support the sector through a soft sales period.

The Opposition has previously criticised Government announcements of extra housing grants, labelling it “an admission the industry is at rock-bottom” because of high taxes and rising costs. The extension is in addition to Government backing for first-home buyers and people purchasing off the plan in the CBD and Riverbank districts.

It means a first-home owner buying an off-the-plan apartment in the CBD and Riverbank is eligible for a maximum $39,830 in support, including the Housing Construction Grant.

The $5000 First Home Owner Grant for established houses will end in 2014 – but a $15,000 grant for new buildings has no expiry date given.

Off-the-plan concessions in the CBD and Riverbank are to be phased out between 2014 and 2016.

Australian Bureau of Statistics figures show a small but steady improvement in approvals for new home construction since a decline to low levels in June of last year.

However, there has been a substantial decline in approvals over the past four years.

A total of 12,873 approvals were granted in 2009-10, 11,852 in 2010-11 and 8634 in 2011-12.

In the financial year to date, the ABS recorded 7021 approvals with two months remaining.

Source: Adelaide Now

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