For first home buyers and existing homeowners, the news couldn’t be better. Right after the Federal Government announced their $25,000 ‘HomeBuilder’ grant, the Western Australian State Government launched a $20,000 ‘Building Bonus’ grant.
We’ve never seen this type of money available to both existing and first home buyers. But, that’s not the total sum of money that the government is giving away — there are even more incentives available. It’s fair to say, there has never been a better time to build.
So, who is eligible for a huge windfall of cash grants and who might miss out? Keep reading to find out if you qualify.
First Home Buyers
The major winners of the new government grants are eligible first home buyers. On top of the new $45,000 combined grant, there is also the existing $10,000 First Home Owner Grant (FHOG) and $0 Stamp Duty on blocks of land under $300,000.
If you or your partner haven’t owned a property in Australia before and you meet the grant(s) criteria, your total savings could equal $69,440.
To be 100% sure that you qualify for all financial incentives, you should talk to a Blueprint Homes representative first.
Until now, existing homeowners had been left out of government incentives geared towards building new homes. But, that’s all changed with the ‘HomeBuilder’ and ‘Building Bonus’ grants.
While the Federal Government has also included an incentive for those wanting to renovate, the minimum renovation spend of $150,000 has many wondering whether knocking down and rebuilding a new home is a better alternative.
What will you spend the cash on?
Imagine having an extra $45,000 or $55,000 to spend on your new home! If you qualified for all the government grants, you could plan ahead and design the home you’ve always wanted. Maybe you’ll want to upgrade to a luxury kitchen or expand your living and entertaining area or add a pool or workshop.
If you choose a custom builder like Blueprint Homes, you can make those additions to your plans without any fuss. Being a custom builder, Blueprint Homes will happily help you design your dream home.
The Fine Details
The Federal and State Governments have slightly different eligibility requirements regarding their cash grants. Read on to see whether you qualify for both cash grants.
To be eligible for the Federal Government’s ‘HomeBuilder’ grant you must:
- Be a natural person, not a company or trust
- Be aged 18 years or older
- Be an Australian Citizen
- Meet the following income requirements:
- $125,000 pa or less for individuals (based on 2018/19 tax return or later)
- $200,000 pa or less for couples (based on 2018/19 tax return or later)
- Enter into a building contract by 31 December 2020 to build a home which will be your primary place of residence and valued at a maximum of $750,000
- Begin construction on your property within three months of the contract date
The Western Australian State ‘Building Bonus’ grant varies slightly with its eligibility requirements. The main difference is that it is available to investors as well as owner/occupiers and first home buyers.
To be eligible for the Building Bonus grant:
- The home must be a detached house – not for mixed use, commercial purposes or short stay accommodation
- The home cannot share walls or roof structure with any other building
- The land must be vacant — you can demolish your existing home and build on the vacant land
- The building contract must be in the name of the registered owner of the land
- You must enter into an agreement by 31 December 2020 and commence building within six months of the contract date (by June 30, 2021)
As you can see, the benefits of building a new home right now are enormous and it’s hard to say whether we’ll see a home building stimulus package like this again.
To find out if you qualify for the HomeBuilder, Building Bonus or First Home Buyers Grant contact Blueprint Homes today.