WARRNAMBOOL tradies say they're having to knock back work as a combination of government incentives, low interest rates and investment from outside areas cause a building boom.
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Warrnambool's Tim Davies is one new homeowner securing a $25,000 federal HomeBuilder grant to build a house with wife Kirrily and their two kids in the city's west.
So far the incentive has been paid to 59 recipients in south-west Victoria, 23 of those in the Warrnambool area.
There is strong demand for the grant with Victoria's State Revenue Office processing 1260 HomeBuilder applications for regional Victoria since August.
The grant is now $15,000 for eligible property owners who build or substantially renovate a home with an extended deadline for contracts signed up until March 31.
But Mr Davies will also receive incentives as a first homebuyer, saving him about $50,000 on the cost of the build.
"It has made it easier for us to get into the market, and gave us the option of having a few upgrades, or a little bigger house than we would have decided on," the 28-year-old said.
"We are a young family and have two kids as well and it's been quite an accomplishment to enter the housing market to begin with, saving a deposit while renting and raising two kids. It gave us confidence to enter the market."
The popularity of the grant is also one of the reasons why Mr Davies, a carpenter with builder Stephen O'Keefe, has an "abundance of work" to do in Warrnambool and surrounds in the next 12 months.
Mr O'Keefe said he was nearly booked for a full year of projects for 2021, usually consisting of three major projects alongside a handful of smaller jobs.
"A lot of builders were busy prior to the grant but I assume it has stimulated the continued buoyancy for local builders," Mr O'Keefe said.
"I strongly believe it's not just the grant in Warrnambool, it's people deciding to invest in Warrnambool from some of the metro areas. It's been a bit of seachange for some."
He said the building boom was great for the industry but acknowledged it meant tradies were in high demand.
"It's becoming difficult for those people who are looking at doing those smaller jobs, they are struggling to find trades," Mr O'Keefe said.
"Builders in Warrnambool are knocking back work because they just can't cope with the demand."
Richardsons Joinery co-owner Luke Richardson said his books were full for the next six months.
"We are always busy but have been exceptionally busy since COVID pretty much," Mr Richardson said.
"It's probably due to people spending time at home and looking at their house and making it want to look better."
Mr Richardson's business has operated for seven years and he said now was the busiest it had been.
"You do have an excess of calls and it's hard to keep up with demand. We've had one extra worker," he said.
Mr Davies said the demand had also allowed businesses like Mr O'Keefe's to put on an apprentice.
"When business is good bosses are willing to put on apprentices and that's good for the next generation of tradesman," Mr Davies said.
"It's only a good thing, because when the tradies are busy they earn plenty of money and go out and spend it in the local economy."
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