The Government’s new HomeBuilder grant is a great way for first home buyers to get an extra boost on buying a new home, on top of other incentives like the First Home Owners Grant. But you need to be quick – opportunities are limited and applications close 31 December this year. Read on to learn more or get in touch to speak with out team.
HomeBuilder is a $25,000 tax-free grant given to eligible owner-occupiers, including first home buyers. It can be used to help fund the construction of a new home, or the substantial renovation of an existing home.
It’s a federal scheme designed to help boost the residential construction industry in the wake of the coronavirus.
The grant is available on eligible contracts signed between 4 June 2020 and 31 December 2020 (inclusive). However, while contracts must be signed within this timeframe, construction does not have to commence straight away – in Victoria you have up to six months to start on the project from the time you sign the contract (a three month extension on other states due to the recent stage 4 restrictions in the state).
Like all government grants and incentives, HomeBuilder comes with its own eligibility criteria. The full list of these can be found on your State or Territory Revenue Office’s website (the SRO in Victoria has a great interactive questionnaire to help you work out if you’re eligible), but here are the basics:
For first home buyers, it’s good to know if you’re an Australian citizen who is eligible for the First Home Owners Grant, First Home Loan Deposit Scheme, and First Home Stamp Duty Waiver or Concession, you’re most likely eligible for HomeBuilder too!
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While it might be tempting to put this $25,000 cash boost towards a deposit on your first home, HomeBuilder isn’t designed to be used this way – and the bank will not count it towards your genuine savings. You’ll still need to have some funds available to put towards a deposit, or have someone willing to act as guarantor. Instead, the $25,000 is to be used to fund part of the cost of construction.
With the countdown to 31 December 2020 ticking closer and closer each day, you’ll want to act fast to take advantage of HomeBuilder before it’s too late. At First Things First we can help you find a property that is eligible for the grant and put you in a position to sign contracts and apply for the grant before the deadline.