Cabonne Council have decided to open up its rebate on development application fees for buyers intending to build in Molong Heights Estate and Long Corner Estate in Canowindra.
The rebate, which saves home buyers around $10,000 in development application fees, was originally offered only to first home buyers in conjunction with the Federal Government’s First Home Owner Grant, but will be extended to all purchasers of blocks in either estate until the end of September.
Council resolved to extend the rebate on Monday due to poor land sales in the estates.
“At the moment the blocks aren’t selling and we want to move it along,” Cabonne mayor Kevin Duffy said.
“Things have stagnated a bit and this is an added incentive for people who want to move to the area.
“We’ve had a number of enquiries from people interested in the lots who aren’t first home buyers so we’ve unleashed the shackles a bit.”
Partner of KFS Canowindra Real Estate Richard Kinsela said despite the offering being opened for six weeks, they have not had any interest.
“We have sold two blocks of the 15. They are great blocks as the telstra, sewer and gas lines are already in place,” Mr Kinsela said.
Mr Kinsela said once a contract to build has been signed, $10,000 will be rebated.
Cr Duffy conceded Council would lose up to $5000 per block by offering the rebate but poor sales made it a necessary measure.
“We will be losing money but because the blocks aren’t moving council wants to see them go, as we have too much money tied up in them,” he said.
“We will lose up to $5000 on some of the blocks, which we consider to be reasonable given the economic situation.
“We consider the rebate to be worth it if it encourages more people to the area.”