Latest news with #Keystart
ABC News
18-06-2025
- Business
- ABC News
Builder says WA government's modular push neglects key ingredient for new housing
A country builder says the Cook government's decision to use so-called modular housing to address Western Australia's shortage of affordable housing fails to account for the lack of developed land. The government announced the low-deposit loans for modular housing, to be offered through state-owned lender Keystart, as part of a suite of housing measures ahead of tomorrow's state budget. But country business and community leaders say the homes will not be much use without land to put them on. The Shire of Waroona — a regional migration hotspot just south of metropolitan Perth — is a case in point. "We have had developers who've looked at developing land and they've been knocked back given there's no more capacity in our system," said shire president Mike Walmsley. Headworks refer to the initial water and power infrastructure required for residential lots and is carried out by the state-owned Water Corporation and Western Power. Housing and Works Minister John Carey said the government had launched "unprecedented" measures to unlock land for regional housing. "Claims to the contrary are simply false," he said. He said $40 million from the government's infrastructure development fund had been put towards reducing obstacles to land development, including costs associated with utility connections. "Recently, we announced the new $400 million Housing Enabling Infrastructure Fund to unlock land in both regional and metropolitan areas," Mr Carey said. "This fund will help deliver critical water and power infrastructure to support a pipeline of residential land supply across the state." Mr Carey pointed to the sale of more than 1,000 lots across 90 towns since 2020 under the Regional Land Booster program as evidence of the government's success. Mr Walmsley said Water Corporation had blocked potential housing developments due to pressure on the local wastewater facility, which had operated at capacity since 2016. The state government pushed back upgrades until 2028, according to the shire. Mr Walmsley said the government's responsibility to provide power and water to meet growing housing demand had seemingly been neglected. Local governments in the broader Peel region have been pushing for expansion of local sewage capacity to support new subdivisions and population growth. Regional builder Sam Karamfiles is based in Manjimup, 300 kilometres south of Perth, where land availability has also put the handbrake on housing supply. "There's definitely an undersupply of affordable land in regional areas," Mr Karamfiles said. "Even with major developments in Perth, they're all hinged on government decisions and red tape." In the farming community of Pingrup, 360km south-east of Perth, Carol Walsh began assembling a modular home to house staff on her farm in 2024. She claimed she applied to Western Power to connect power to the modular home more than two years ago. "If it had been a family home, it would've been an absolute nightmare," she said. Off-site construction has a lot of natural advantages in regional and remote areas with the tyranny of distance and acute shortage of skills making on-site builds more challenging. The government's pivot to off-site construction has been lauded by Master Builders WA chief executive Matthew Pollock. "This is very welcome as something that will particularly help in the regions and remote areas where traditional supply chains are stretched, which makes it difficult to build traditional housing on site," Mr Pollock said. Mr Karamfiles was not too concerned about losing business to off-site builders. He said existing regional builders were already stretched to the limit. Western Power and Water Corporation have been contacted for comment.
West Australian
16-06-2025
- Business
- West Australian
Keystart: State Government's lender introduces new loans, schemes to help get more West Aussies into housing
Home buyers will have access to a range of new loans and shared equity schemes in a fresh bid by the Government to get more West Australians into housing. On Monday, the State Government's lender, Keystart, introduced several new programs, including a dedicated loan for modular construction, amid a tepid take up from banks and other mortgagees to offer products. As part of the announcement, promised by Labor at the State Election, borrowers will be offered low-deposit loans with additional progress payments to support builders and improve access to the new building style. The Government has also unveiled a new shared equity scheme to allow low or middle-income households to buy into a medium or high-density development. Keystart will take up to 35 per cent of a property's value to a maximum of $250,000 to support new buyers. Housing and Works Minister John Carey said he hoped the new dedicated modular products would make the construction method more viable for local buyers. 'I would like as many West Australians to take up modular homes. It's still fair to say that while we've seen significant growth in modular we still, as a state, across the board, have a fixation with double brick,' he said. 'There will still be some hesitation, but I hope this enables people to think about it as a serious option.' Master Builders WA chief executive Matthew Pollock welcomed the announcement as a major boost for the local industry. 'With significant ongoing market challenges and cost of living pressures, these challenges have continued to make it difficult for many home buyers. 'The new low deposit modular loan product is a fantastic initiative, as modular construction continues to become a more popular choice for many, especially in regional WA. 'And in having additional progress payments made available will greatly assist builders in their cashflow, helping sustain and grow industry capacity.' It comes ahead of Keystart being transformed into a government trading enterprise as of next month, with Labor announcing former minister Sue Ellery would join the board, which would be chaired by former Under Treasurer Michael Barnes.
West Australian
25-05-2025
- Business
- West Australian
Low-deposit home loans support first-time buyers across WA
With the rising cost of living, a strong property market and high deposit requirements, homeownership feels out of reach for many. But for thousands of Western Australians, Keystart has offered an alternative way in. Since 1989, Keystart has helped more than 124,000 Western Australians get their foot on the property ladder by lowering the barriers to homeownership. One of the biggest challenges for first homebuyers is saving for a deposit. Keystart's low-deposit home loan enables more people to get started on their homeownership journey sooner, as it takes significantly less time to save for a deposit compared to traditional lenders. 'All Keystart home loans have lower entry costs with a two per cent deposit requirement and no lenders mortgage insurance, saving our customers thousands,' Keystart CEO Mark Tomasz said. 'With our low deposit, it may not take you very long to save the required amount, helping you get into your own home sooner.' With Keystart, you can choose to build new, or buy an established or newly built home. Whether it is a house, a unit or an apartment, you can choose what best suits your needs. As a transitional lender, Keystart's goal is to help you get started, not to be your lender for life. Once you have built up enough equity in your property, it encourages you to move to another lender who may offer lower interest rates and other benefits. With loan products designed to respond to market conditions, Keystart continues to support people across metropolitan and regional WA. Not everyone is eligible for a Keystart loan – to ensure Keystart helps those who need it, there are certain criteria, including maximum property price and income limits. Keystart's current property price limit on its Low Deposit Home Loan is $730,000. The income limit for singles is currently $148,000, with a family income limit of $218,000 for this loan product. For a Shared Ownership Home Loan, the property price limit is $615,000 with the singles income limit being $123,000 and the family limit set at $189,000. Separate property price limits exist in the Kimberley and Pilbara to reflect their unique property market conditions and higher living costs across the region. The property price limits are reviewed periodically against annualised median house price data sourced from the Real Estate Institute of WA. Income limits reflect the income required to service the property price limits. 'We're passionate about creating more opportunities to help people enter the property market sooner,' Mr Tomasz said. 'We're here to support you through your journey. 'Whether you're using our guides and resources, engaging with our financial coaching service or tracking your loan progress with our app, we'll set you up for homeownership success.' Keystart provides an affordable pathway into homeownership for more Western Australians with low entry cost loans, including two per cent deposits and no lenders mortgage insurance.
West Australian
25-05-2025
- Business
- West Australian
Smart planning needed and government incentives available to help you step into the property market
While strong price growth over the past couple of years has made buying your first home more challenging, Real Estate Institute of Western Australia (REIWA) President Suzanne Brown said it was still achievable but might require some compromises. 'First homebuyers remain very active in the WA market, with data from the Australian Bureau of Statistics showing first-time homeowners made up 37.7 per cent of all owner-occupier loans in 2024,' she said. 'However, many have had to reassess their expectations, potentially shifting their focus from houses to more affordable options like units, villas or townhouses to get into the market. 'They're also needing to broaden their search to suburbs further from the Perth CBD, where prices tend to be lower. 'Currently, suburbs in Perth's south-east and south-west, along with Midland to the east, are the most affordable suburbs for houses. 'For people looking to be closer to the city, units in Wembley and Bayswater offer affordable opportunities.' Ms Brown encouraged first homebuyers to do their research thoroughly and to not be deterred by median house prices when considering where to buy. 'It is important to remember the median is the middle, and 50 per cent of sales will be below this price,' she said. 'There will still be affordable options in many suburbs – it may just take time and patience to find them in some areas. 'If your preferred suburb is out of your price range, look at neighbouring areas, which are sometimes called bridesmaid suburbs. 'They will be close to the same amenities you find desirable but are usually more affordable. 'I also remind first homebuyers their first house is often a stepping stone along the homeownership path not the final destination. 'Buy what you can afford, pay down the mortgage, and build some equity and upgrade later.' Ms Brown said saving a deposit was one of the greatest challenges facing first homebuyers, particularly in a climate of rising prices. She encouraged them to start saving as soon as possible and to make use of government schemes to help them build a deposit and get a loan. 'The Federal Government's first home super saver scheme lets first homebuyers save a deposit through their superannuation,' Ms Brown said. 'You can apply to withdraw a maximum of $15,000 of your voluntary superannuation contributions from any one financial year to buy your first home. 'Across all years, the maximum amount you can withdraw is $50,000 of personal contributions, plus earnings. 'First homebuyers should also know you don't need to have a 20 per cent deposit to get a loan. 'However, if you have less than 20 per cent, you will have to pay lenders mortgage insurance (LMI).' Ms Brown said there were further government schemes addressing this. 'Keystart is a State Government initiative allowing eligible buyers to get a loan with as little as a two per cent deposit and pay no LMI,' she said. 'The Federal Government's First Home Guarantee scheme allows eligible buyers to access a loan with a five per cent deposit. 'The government guarantees the remaining 15 per cent, negating the requirement for LMI. 'The Federal Government is also expected to launch its Help to Buy shared equity scheme later this year. 'It will allow buyers to benefit from a smaller mortgage and lower repayments, with the government taking an equity share of up to 40 per cent of the purchase price of new homes and 30 per cent of the purchase price of existing homes.' Ms Brown said there were several other grants and measures, which could help first homebuyers get their foot on the property ladder. 'If you buy or build a new home, you may be eligible for the $10,000 First Home Owner Grant,' she said. 'First homebuyers may also qualify for a $2000 grant from the Home Buyer Assistance Account to help with the incidental costs of buying a home such as settlement fees. 'Stamp duty is another major challenge facing homebuyers, as it is an additional cost on top of saving for a deposit.' According to Ms Brown, earlier this year, 63 per cent of 15,000 respondents to a Housing Issues Survey on agreed stamp duty was a significant barrier to homeownership in WA. 'There are stamp duty concessions to help address this,' she said. 'If first homebuyers buy a home valued at $500,000 or less, they will pay no stamp duty, saving up to $18,000. 'They will pay a concessional rate on purchases valued up to $700,000 in the Perth metropolitan area and Peel region or up to $750,000 outside of these areas. 'REIWA has been advocating for these thresholds to be lifted for some time, and we were pleased when the State Government announced an increase in March. 'However, rising prices mean these changes could quickly become redundant. 'We would like the State Government to go a step further and link the thresholds to REIWA's median sale prices – as Keystart has done for its products – so they can move with the market and remain accessible to as many first homebuyers as possible.' Ms Brown offered some additional tips for first homebuyers. 'Visit a mortgage broker to get an accurate idea of how much you can borrow,' she said. 'Get your finance pre-approved and speak to the selling agent about what you can do to strengthen your offer. 'Consider using a buyer's agent and, lastly, leave plenty of time for settlement.' is the home of Western Australian real estate, representing more than 1350 member agencies or 90 per cent of the sector. With more than 100 years of industry leadership and local knowledge, it is uniquely placed to provide in-depth market intelligence free of charge.
West Australian
25-05-2025
- Business
- West Australian
Time to deliver on housing promises
The spotlight will be on the first budget of the newly re-elected Cook Government when it is handed down in late June. For many Western Australians, housing continues to be one of the most pressing issues which will receive funding initiatives in this budget. The squeeze of rising living costs, declining affordability and ongoing housing supply shortages are still being felt in many households across the state. To that end, UDIA WA welcomed WA Labor's housing commitments during the election campaign, many of which closely aligned with our own advocacy. Now, as we approach the first budget of the new term, we are expecting these promises to be backed with the funding needed to implement them. While the budget is likely to focus on those already-announced initiatives, there is also an opportunity to look at further initiatives to addressing the state's housing challenges. With smart, targeted investment, the State Government can partner with the private sector to deliver even more homes faster. Among the key commitments we expect to see funded is the $20.6 million to expand stamp duty exemptions for off-the-plan and under-construction homes by $100,000, including townhouses, villas and apartments. The State Government also promised $110.7 million to lift the First Home Owner Rate of duty threshold to $500,000, with discounts available for homes priced up to $700,000 in Perth and $750,000 in regional areas. We also anticipate $75 million for a Build to Rent Kickstart Fund and a $210 million boost to the Keystart shared equity scheme for up to 1000 new apartments and townhomes purchased off-the-plan or under construction, which will help deliver up to 1000 new homes for Western Australians. The $400 million Housing Enabling Infrastructure Fund is another significant initiative we fully support. Infrastructure investment is essential to unlocking housing supply and bringing new developments to life. But we can't stop there. UDIA WA is urging further funding to support the delivery of new homes and to help keep housing within reach for more people. This includes ensuring service agencies have the capital budgets they need to avoid delays to residential land development. We'd also like to see further funding allocated to build on the initial $400 million Housing Enabling Infrastructure Fund to catalyse residential development in key growth areas, as well as an extension and expansion of the existing Infrastructure Development Fund to boost the viability of apartment projects. UDIA WA has also recommended reforms to improve government efficiency and coordination in planning and approvals. Overall, this budget is an opportunity for the Cook Government to follow through and make a real difference to the future of housing in WA.
