New year says goodbye to building grant

Not such good news for those considering building a new home in 2014.  South Australia’s $8,500 grant to support locals building new homes has been discontinued.
The Housing Construction Grant was introduced in October 2012 by the State Government for people building new homes worth up to $400,000, with smaller grants available for homes worth up to $450,000.  There were 4300 grants awarded.
Professionals CEO, Ted Piteo, said the grant was introduced at a time that helped boost the building economy in South Australia, and had been a worthwhile incentive, particularly for first home builders.
“The good news is that buying vacant land in Sa remains very affordable, interest rates are low, and job prospects are good here with the number of urban projects currently under way.  We hope the discontinuation of the grant doesn’t impact the building industry or consumers.”
After a promising first half of 2013, new home lending in South Australia lost some momentum, declining by 6.8% in October 2013, according to a report on realestate.com.au.