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In the current uncertain times, we are seeing two interesting trends; That of established home owners choosing to bed down and renovate rather than sell, as well as new entrants to the property market choosing to construct rather than buy an established home.
Designed to boost the economy, the HomeBuilder grant represents a great opportunity for both. The scheme has caused quite a stir, but also some confusion, particularly as it’s taken some time for lenders to establish at what stage of the process they will accept the grant funds. There is still some disparity amongst lenders, but most are now accepting the payment as part of ‘funds to complete’. The payments are most often made to the client or lender at the slab stage of a new construction or in the case of a renovation, when the applicant has paid a minimum of $150,000 towards the project.
This grant will also work alongside first-home owner grant programs (an extra $15,000 giving first home buyers $40,000 in grants), and including the federal government’s first-home loan deposit scheme and first-home super saver scheme. There are thousands of dollars of potential savings. If you are thinking of renovating or building, then now is the time.
Q: Can you purchase a property with an existing house?
A: You may be eligible if you are planning to demolish the existing home and constructing a new home.
Q: Does buying a block of land qualify ?
A: Whilst you need land to be able to get the Home Builder grant, the grant specifically relates to the building or renovation of a home.
Q: What do I do if I want the Home Builder grant but the land is not ready yet?
A: You must ensure your land will be ready in time to meet the deadlines for Home Builder grant.
Q: What are the minimum and maximum build costs for the Home Builder grant?
A: There is no minimum price for new house and land but the combined cost cannot exceed $750,000.
Q: Is the HomeBuilder grant taxed?
A: No – HomeBuilder will not be taxed in the hands of the owner-occupier. This is consistent with the existing State and Territory First Home Owner Grant program.
Q: How do I apply?
A: In Queensland the applications are lodged through the Office of State Revenue. We will guide you through the application process.
Q: When should I apply?
A: Applications for the HomeBuilder Grant must be received no later than 31 December 2020.