Industry needs a kickstart

Government’s HomeBuilder grant will kickstart the local building industry as intended.

‘‘Building is an important part of economic activity and the cost for developers is high. So how do we help the market?’’ Mr Thomson said.

‘‘We need some stimulus from council or help for the developers because there are huge costs to build.

‘‘I see it as a really critical point for the town’s growth.’’

The grant itself offers $25,000 to anyone building a new home up to $750,000 in value (which includes land if not already owned) or pursuing renovations in excess of $150,000.

Mr Wheatley said there appears to be little interest locally, because it is far less expensive and time consuming to buy an existing home.

‘‘In other words, our market has not advanced fast enough,’’ Mr Wheatley said.

‘‘People are saying ‘well okay, it is going to cost us $350,000 to build a new house, plus buying a block, plus plus plus’.

‘‘Whereas they can go into the market and buy an existing property that might not be exactly what they want, but is close to what they want for a lot less money.’’

Mr Wheatley said what is worrying is the reduction in available listings. Elders currently has 20 to 30 genuine residential houses for sale, compared to their average of 60 to 80.

He said this will force home owners to go through the stress of having to build, unless more can be done to encourage developers to do the work for them.

‘‘If people can’t find a property or existing house, then what do they do? They build,’’ Mr Wheatley said.

‘‘I think we are just starting to see a little interest there and that is where the $25,000 comes in.

‘‘But it has a very tight criteria and a contract must be signed with a builder by December.

‘‘If you look around, you won’t find many builders here available to do these works, if any, because they are all busy.’’

Edward River Council Mayor Norm Brennan said there are a number of ways council could potentially help drive residential development, and said council is happy to discuss those with developers.

‘‘There’s a variety of things at council’s disposal, including waived fees, rate relief or other things,’’ he said.

‘‘I would encourage anyone who is considering forming a sub-development to come forward.

‘‘I would expect council would look quite favourably on anyone wanting to pursue such a project.’’

Cr Brennan said council also continues to investigate releasing more river frontage land, which it says would provide an added stimulus to building and growth.

He has said, however, that such developments would likely be ‘‘a little bit out of town’’.

‘‘River frontage land is limited close to the Deniliquin CBD because of existing state titles, but there are more opportunities down stream that can be explored.’’

Applications for the HomeBuilder grant, which are administered by state revenue departments, must be received no later than December 31, 2020.