Invest
Beware building for the sake of free money
Buyers have been warned not to dive into a property purchase for the sake of government grants without properly considering the future return on that investment by a property investment consultancy.
Beware building for the sake of free money
Buyers have been warned not to dive into a property purchase for the sake of government grants without properly considering the future return on that investment by a property investment consultancy.
Perth-based Momentum Wealth has said that state and national stimulus measures have driven “a significant” increase in first home buyer enquiries.
In Western Australia, eligible first home buyers could receive between $44,000 and $70,000, thanks to existing first home owner grant and duty concessions, combined with new HomeBuilder measures “if they sign a contract to build or purchase a new property under construction before 31 December 2020”.
It’s a “great opportunity for first home buyers to enter the market”, according to Momentum Wealth’s residential investment committee chair, Emma Everett.
“The stimulus provides a great opportunity for buyers to get into their first home sooner than planned, but these new building grants are also somewhat geared towards house and land packages in outer suburban housing estates, many of which are already facing oversupply.”
The consideration has led her to warn buyers not to overlook the risks and cost of building or buying in the wrong area.
“This isn’t to say don’t build or buy a new property, but buyers need to be careful about where they do it, keeping in mind the implications on their property’s future value as well as their own lifestyle requirements.”
“One of the key risks for buyers who purchase in these outer areas is that they will not just be competing with the existing supply already on market, but also new stock that comes on stream from future developments, which could not only hold back their property’s long-term capital growth potential, but also accelerate price declines in a future downturn” she explained.
Rather than buying in outer areas where there could be such an oversupply, Ms Everett has touted the suggestion that buyers “could look at purchasing an infill lot in an established suburb closer to the city, or a townhouse or villa under construction in a more tightly held area where there’s less competing stock, better amenity and a higher land value advantage to drive the property’s [value] growth over time.”
She argued that “at the end of the day, if you’re paying $20,000 too much to purchase a lot or house and land package that won’t pay you back in its end value, that’s going to defeat the object of qualifying for the grant in the first place.”
Just as importantly, the investment expert conceded that “you don’t want to be purchasing a poorly located block of land just to receive the full $70,000 in grants if that property is going to decline in value and reduce your long-term returns, where purchasing a villa or townhouse would benefit you more in the longer term due to stronger capital growth”.
RELATED ARTICLES
About the author
About the author
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
Property
Multigenerational living is moving mainstream: how agents, developers and lenders can monetise the shift
Australia’s quiet housing revolution is no longer a niche lifestyle choice; it’s a structural shift in demand that will reward property businesses prepared to redesign product, pricing and ...Read more
Property
Prestige property, precision choice: a case study in selecting the right agent when millions are at stake
In Australia’s top-tier housing market, the wrong agent choice can quietly erase six figures from a sale. Privacy protocols, discreet buyer networks and data-savvy marketing have become the new ...Read more
Property
From ‘ugly’ to alpha: Turning outdated Australian homes into high‑yield assets
In a tight listings market, outdated properties aren’t dead weight—they’re mispriced optionality. Agencies and vendors that industrialise light‑touch refurbishment, behavioural marketing and ...Read more
Property
The 2026 Investor Playbook: Rental Tailwinds, City Divergence and the Tech-Led Operations Advantage
Rental income looks set to do the heavy lifting for investors in 2026, but not every capital city will move in lockstep. Industry veteran John McGrath tips a stronger rental year and a Melbourne ...Read more
Property
Prestige property, precision choice: Data, discretion and regulation now decide million‑dollar outcomes
In Australia’s prestige housing market, the selling agent is no longer a mere intermediary but a strategic supplier whose choices can shift outcomes by seven figures. The differentiators are no longer ...Read more
Property
The new battleground in housing: how first-home buyer policy is reshaping Australia’s entry-level market
Government-backed guarantees and stamp duty concessions have pushed fresh demand into the bottom of Australia’s price ladder, lifting values and compressing selling times in entry-level segmentsRead more
Property
Property 2026: Why measured moves will beat the market
In 2026, Australian property success will be won by investors who privilege resilience over velocity. The market is fragmenting by suburb and asset type, financing conditions remain tight, and ...Read more
Property
Entry-level property is winning: How first home buyer programs are reshaping demand, pricing power and strategy
Lower-priced homes are appreciating faster as government support channels demand into the entry tier. For developers, lenders and marketers, this is not a blip—it’s a structural reweighting of demand ...Read more
