To build or not to build…?

December 24, 2020


There’s a land rush happening across Australia bolstered by grants and incentives, and premium house prices. How often have you looked online and thought there’s simple no way I could afford that?

Lofty property prices - thanks to general scarcity of stock ( read land here) and buyers who are making the most of low interest rates - plus a raft of compelling building and first home buyer incentives, have turned the tide on the types of property people are buying in 2021.

Vacant land is the new black, or well, green, but you get the point! The biggest online property site in Australia reported that interest in vacant land shot up 180 per cent in response to the HomeBuilder scheme, which offers $25,000 to buyers. That is a huge increase in enquiry.

And it’s not the only incentive in the market. If you’re a first home buyer, you can couple the HomeBuilder scheme with a First Home Buyer grant in your state. In most states that’s $10,000. For the Sunshine State and South Australia it’s $15,000. In NT, it’s $20,000! In Victoria there is a regional bonus too and West Australians and Territorians benefit from a $20,000 building bonus on top of the first home owner grant, plus everyone’s enjoying first home owner stamp duty concessions. 


Let’s do some back-of-the-envelope math, presuming eligibility for each of these grants: 

  • $25,000 (HomeBuilder*) + 
  • $10,000-$20,000 (First Home Buyer state grants*) + 
  • $10,000-$20,000 (building grants in Tasmania, NT and WA* plus regional VIC) + 
  • ~$10,792 (average stamp duty paid in Australia in 2020^)

  = tens of thousands of reasons to build rather than buy

THEN, there’s the federal government’s First Home Loan Deposit Scheme that allows you to buy with just a 5 per cent deposit. In NSW and Vic, the median 5% deposit paid under this scheme was just under $30,000, while it was nearly half of that in Tasmania. 10,000 additional schemes were announced at the start of the financial year, but based on round one time is of the essence for those considering applying. 

With a raft of incentives, and property prices not budging even during a pandemic, more and more Australians are deciding to build rather than buy and here at Kudos Money we can help you get the best property for your buck! Call Paul on 0439 337 789 or Sarah on 0421 079 415 today!  


Get in touch today to understand your options and start the journey to your dream home.


* Some eligibility criteria applies

^Source: UDIA, Stamp Duty Calculator Australia through stamp duty concessions.


Kudos Money is a registered trading name of Kudos Money Aust Pty Ltd ATF Kudos Money Unit Trust ABN 81 976 529 731.

Kudos JP Partners Financial is a registered trading name of JWPL Holdings Pty Ltd ATF JWPL Holdings Unit Trust ABN 94 505 643 519. All product and lending services are provided by JWPL Holdings Pty Ltd ATF JWPL Holdings Unit Trust t/as Kudos JP Partners Financial ABN 94 505 643 519 | Corporate Authorised Representative 515831 Beagle Finance Pty Ltd Credit Licence No 383640


The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.