Federal Government HomeBuilder Grant
In 2020, the Federal Government has announced it will give eligible Australians $25,000 to build a new home with its new HomeBuilder stimulus scheme. This is a win for first home buyers and those wanting to build their own home, and we’ve got a quick run-down on what the scheme entails and who is eligible!
What is the HomeBuilder Grant?
The Federal Government will give $25,000 grants to owner-occupiers to spend on the construction of new homes when they enter in to a building contract over a timeframe of six months. The scheme is designed to help both first home buyers enter the property market sooner and those looking at constructing a new home to live in, as well as help those affected by the recent bushfires rebuild in their local community. Applications for the scheme closed on April 14, 2021, however, those who started an application before this date are still able to continue their application including uploading supporting documents. On April 17, 2021, the Federal Government announced that the construction commencement requirement has changed from six months to 18 months for all existing applications.
Who is Eligible for the HomeBuilder Grant?
• The grant is available to Australian citizens aged 18 years or older.
• A contract with a registered builder to substantially renovate your
principal place of residence where the value of the property is between $150,000 and $750,000, and where the value of the house and land doesn’t exceed $1.5 million.
• Owner-occupiers will be required to spend at least $150,000 of their own money on a newly constructed home before being eligible.
• Owner-occupiers are not required to be first home buyers to receive the grant.
• The grant will also be means-tested: individuals earning over $125,000 per year and couples earning a combined $200,000 per year will be excluded.
• The scheme does not apply to investment properties or to owners who intend to build a home on their own without the help of builders.
• All eligible builders must have been licenced or registered before the
Government’s announcement of the scheme if the contract was entered into before November 29, 2020.
• For eligible contracts entered into after November 29,2020, the builders must have been licenced or registered before November 29, 2020.
• Building work must commence within 18 months of the contract being signed.
• The HomeBuilder Grant will complement the existing first homeowner grant programs in each state and territory, along with any stamp duty
concessions and other grant schemes that are available to homeowners.
• The HomeBuilder Grant will also be available to anyone accessing the First Home Loan Deposit Scheme for a new home.
• The Grant will be administered by your state or territory’s revenue office.
• In all cases, construction cannot have commenced before June 4, 2020
• For contracts to purchase an off the plan home or new home, construction can have commenced before the date of the sales contract, but not before June 4, 2020. The buyer must be registered on the certificate of title as the owner of the property by no later than April, 20, 2023.
For eligible contracts entered into between June 4, 2020 and December 31, 2020
• For eligible contracts entered into between these dates are eligible to receive a $25,000 grant.
• The construction of the new home will be capped at a value of $750,000, including the land.
For eligible contracts entered into between January 1, 2021 and March 31, 2021
• For eligible contracts entered into between these dates are eligible to receive a $15,000 grant.
• The construction of the new home will be capped at a value of $850,00, including the land.
First Home Buyer Resources
We know what an exciting milestone building a new home is, and even though it may seem daunting, at Hotondo Homes we’ve put together a wealth of resources to assist you with all your planning. Our website features information about the First Home Owner Grants in each state so you can see exactly what you’re eligible to receive. We also have a suite of eight calculators to help you understand things like your borrowing power, how much your loan repayments will be, a loan comparison calculator, a stamp duty calculator, plus much more.
Home Designs
Hotondo Homes is ready to get you started on your journey towards home ownership, and our builders will work with you through each stage of your building process starting with finding the perfect design that suits your budget. Our range of Forever Retreat homes is perfect for first home buyers wanting to build their first home and includes new Cypress and Elsie design ranges just released, while our Forever Sanctuary and Forever Oasis ranges feature larger homes for growing families.
With the announcement of the HomeBuilder Grant there’s never been a better time to build your new home. Whether you’re a first home buyer, a family looking to upsize, or you’re downsizing to enjoy your retirement, Hotondo Homes has a range of home designs to suit your lifestyle. Visit our website today for more information and home inspiration today.
Hotondo Homes is not a registered financial advisory and therefore we recommend you speak to your financial advisor or mortgage broker to receive expert advice before entering into a real estate contract of sale.
