Building towards coronavirus-free future

THE coronavirus has crunched confidence in the property sector but some positive signs suggest buyers and builders can bounce back.

Government efforts to keep building and construction activity near normal levels have been welcomed by the property industry, and the First Home Loan Deposit Scheme continues to sign up buyers this month.

Fewer than 2000 places now remain from the scheme’s original 10,000 spots, released in January.

It enables people to buy their first home with just a 5 per cent deposit while the Federal Government guarantees another 15 per cent. Typically, a 20 per cent deposit is required to avoid expensive lenders’ mortgage insurance.

Beyond Bank Australia’s general manager of customer experience, Nick May, said the scheme had “given the market some real traction”.

“This government scheme and record low interest rates have really appealed to young people who are finding now as good a time as any to enter the market, despite the COVID19 situation,” he said.

“With some fixed rates now very low, borrowing money for a home just isn’t as scary as it may have been before.”

The Property Council of Australia has welcomed government ministers’ commitment to keep planning approvals at their usual pace during the pandemic period.

Chief executive Ken Morrison said it would support jobs now and help with the eventual economic recovery.

If you’re planning to build, it’s wise to know the common pitfalls.

Metricon home solution manager Glenn Cooper said people should understand how a block’s slope could alter costs.

“Generally, the bigger the slope of your land, the greater the cost,” he said.

“If the fall of the land is sideways across the block it can be even more.

“Leaving elements unplanned while the building starts, with the idea you can work it out as you go, can lead to changes needing to be made during construction, which is the most expensive time to make them.”

Financial planner and recent home builder Chris Tinnefeld said it was still important to compare options among builders, as cost differences could be well over $100,000.

Mr Tinnefeld said the biggest building problem was not having your finances sorted first.

“I spent another $70,000 after we moved in on electrical, landscaping and fencing,” he said.

“People forget they still need money to fully complete their house.”