Developers woo home buyers with cash splashes and free mortgages
News Corp Australia - The courier Mail
HOME buyers could save up to $100,000 on top of government stimulus measures as Brisbane property developers and builders try to woo the market with sweet deals of their own.
From cash splashes and furniture packages to free mortgages and stamp duty savings, buyers are being offered lucrative incentives to sign on the dotted line in the wake of the COVID-19 pandemic — but only for a limited time.
It comes on the back of the Queensland government this week announcing a $257 million building stimulus package and the federal government’s $25,000 HomeBuilder grant.
One of the biggest incentives being dangled by developers is an offer to pay the mortgage for a year for anyone who buys an apartment in South Brisbane’s landmark Brisbane 1 Towers before the end of the month.
“During the lockdown we had no inspections and the sales rate dropped,” R & F Property Australia head of sales and marketing, Sam Kandil, said.
“We put ourselves in the buyer’s shoes and asked what would be the main factor that would cause us to postpone, and it was the unknown.
“By paying the mortgage for the first year, we give that bit of comfort and by the time it’s over, everything would be back to normal.”
Within 24 hours of the announcement, 69 inquiries were received.
Estimated at roughly four per cent of the unit value, the offer is worth between $15,000 and $80,000, depending on whether the loan is for a one-bedroom apartment or the penthouse.
The Your First Year’s Mortgage on Us offer is designed to help new unit buyers feel more confident about committing to a home loan as the Australian economy enters a recession.
It’s also a response to the federal government’s HomeBuilder scheme which excludes the purchase of new units that have already been built and units bought as an investment.
“Today’s developers need to think what is it that will trigger buyer interest and the only way to trigger it is to solve the challenges and once you solve their problem, there’s no reason why they shouldn’t invest,” Mr Kandil said.
“If the offer doesn’t solve their needs it becomes a discount not an offer.”
Property developer CFMG Capital is offering a $100,000 cash rebate to each buyer who signs a contract at its three projects in Logan as an added incentive to buy.
CFMG Capital general manager Andrew Thomson said the HomeBuilder grant combined with existing incentives, including the state government’s $15,000 first homeowner grant, had been
a welcome boost for the property industry.
Mr Thomson said CFMG Capital had more than 100 registered homesites ready to build on in the Logan corridor, which meant buyers would have no problems meeting the requirements of signing a contract before September 30 and starting construction within three months.
“With more than $60,000 in grants, benefits and savings available to first home buyers on the average $450,000 house-and-land package, it is a great opportunity for them to get their foot on the property ladder,” Mr Thomson said.
“We are also experiencing record low interest rates which means many renters can now purchase a home with repayments far less than what they are paying in rent.
“The combination of low prices in the Logan corridor and low interest rates mean it is now significantly cheaper to own in the area than to rent.”
Mr Thomson said the added bonus of $100,000 would create a few extra sales for the company over the next three months.
“With the company expecting up to 90 sales before the competition closes on September 30, the odds of winning the $100,000 are quite attractive,” he said.
“The winner can use it to pay down their mortgage, go on holiday or start to think about some extensions or home improvements.”
Home builder Metricon is offering a $45,000 discount on homes in its Designer series to complement the government grants.
Metricon’s Queensland sales manager Josh Darling said the selection of more than 20 single and two storey home designs had been curated to fit the criteria of the HomeBuilder grant scheme, in that they came in under the $750,000 cap.
“We are confident that if customers have titled land or are looking to purchase a home and land package from us on titled land that we will be able to commence construction within the required (three month) time frame,” Mr Darling said.
“The introduction of the HomeBuilder scheme and our further bonus boost has helped fuel record visitor numbers to the Metricon website, strong return visits to display homes and good level of inquiry across a range of buyers.
“First home buyers, upgraders and even people looking to complete knock down rebuild (KDRB) projects have been very active since the scheme has been launched.
“With this record breaking bonus incentive of up to $70,000 and historically low interest rates, it means that building a perfect Metricon home has never been more within reach.”
“It definitely has had a short term effect — hopefully that continues,” Mr Walker said.