Residential developers continue to offer incentives and rebates to encourage buyers of house and land packages and off-the-plan apartments.
These include offers from developers to pay mortgage repayments for a period of time, offers to pay the 5% builder deposit, discounts off the retail price of packages and cash rebates.
Developers increasing reliance on these incentives comes as the outlook for new detached housing remains weak with the latest building approval figures – forward indicators from the ABS show that approvals for detached houses rose just 1.2% from August to September and are down 1.8% year-on-year.
In contrast, apartment approvals rose 17.9% over September to be up 41.6% year-on-year.
Prospective buyers of house and land packages and off-the-plan apartments that come with rebates and incentives could face the possibility of having to raise additional financing due to lenders discounting the rebates from their valuations.
Here’s what’s currently being offered by developers across the country
$24,000 +from Devine
Devine is offering to cover mortgage repayments for up to 12 months for buyers of some of its home and land packages. The offer expires on November 30. The fine print says the repayments must be the minimum required repayments on a 30-year loan and interest only during construction. Devine's contribution will not continue for longer than 6 months after house settlement or 12 months after land settlement, whichever occurs first. Repayments on a $360,000 loan with a 10% deposit over a 30 year term equates to monthly repayments of around $2,000.
Up to $25,000 from Carlisle Homes at Aston
Carlisle Homes are offering house and land buyers a $15,000 discount for selected house and land packages at its Aston development in Craigieburn on Melbourne’s northern fringe. There is an extra $10,000 offered for buyers who purchase the Seville 29 or Pavillion 44 on display.
Up to $25,000 from Villawood
Villawood will pay the 5% builders deposit on new homes in communities in Geelong and Melbourne up to a value of $25,000. The offer is for a limited time, but no expiration date is given.
Up to $50,000 off retail price from Porter Davis
As part of its spring stimulus campaign, Porter Davis is offering a $32,000 discount off the retail price of selected single-storey lifestyle homes and $50,000 off selected double-storey lifestyle homes.
From around $13,000 - Meriton to pay stamp duty on apartments
Apartment builder Meriton is offering to pay the stamp duty on all apartments less any applicable government grants. The offer excludes apartments at Oceanvale (Warriewood) and Cascada (Sylvania). Prices for Meriton apartments start from around $400,000 which equates to stamp duty of $13,500 in NSW and $16,300 in Queensland
Double deposit up to $10,000 from Devine
Devine is offering to double a buyer’s deposit on house and land packages up to a maximum of $10,000.The purchaser will still need to provide funds or obtain finance for the full balance purchase price in order to settle.
Up to $10,000 in rebates from Satterley
WA developer Satterley is offering rebates – cash and stamp duty – on house and land packages in a selection of its residential communities from $5,000 to $10,000.