The newly released HomeBuilder Program brings with it an exciting opportunity for eligible owner-occupiers (not just first home buyers) with a $25,000 grant now available to be put towards a new build or substantial renovation of an existing home where the contract is signed between 4 June and 31 December 2020.
At DRHomes, we welcome any stimulus measures that make it easier for our customers to achieve their dream lifestyle and have broken down the key facts as they relate to building a new home below...
What does HomeBuilder mean for First Home Buyers?
HomeBuilder will complement the existing Queensland First Home Owners' Grant ($15,000) giving eligible first home buyers a total of $40,000 to put towards their new home. Stamp duty concessions will also still be available as well as the First Home Loan Deposit Scheme and First Home Super Saver Scheme, making now the perfect time for eligible first home buyers to make their move. It is important to note that the HomeBuilder grant can not be used as part of your deposit.
For full financial advice please contact your preferred Mortgage Broker or lender. We can also recommend some great Mortgage Brokers - just get in touch and we'll point you in the right direction.
To access the HomeBuilder Grant you must meet the following eligibility criteria:
- you are a natural person (not a company or trust);
- you are aged 18 years or older;
- you are an Australian citizen;
- you meet one of the following two income caps:
- $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
- $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- you enter into a building contract between 4 June 2020 and 31 December 2020 to build a new home that will be your principal place of residence, where the property value does not exceed $750,000;
- construction must commence within three months of the contract date. An extension may be granted in certain circumstances outside of the builders control such as a delay in council approvals
- the foundations must have been laid and the first progress payment made to your builder
How To Apply
If you meet the eligibility criteria above you will need submit your application before the 31 December 2020.
You will also need to supply supporting evidence which will need to be provided by 31 October 2022.
For full instructions on how to apply and what your obligations are, please refer to the Queensland Office of State Revenue website.
Case Study Examples
First home buyers Emma and Liam decide to purchase a house and land package
Emma and Liam enter into a house and land contract for $550,000 on 25 September 2020. Emma and Liam’s bank applies on the couple’s behalf to the relevant State or Territory revenue office to receive the HomeBuilder $25,000 grant.
The revenue office conducts the eligibility checks and reviews the couple’s documentation and confirms that both Emma and Liam are Australian citizens, over the age of 18, have a combined taxable income under $200,000 based on their 2018-19 tax return and the value of the contract is under the $750,000 contract price cap.
As the couple are both first home buyers, Emma and Liam may also be entitled to their State’s First Home Owner Grant and stamp duty concessions as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
Owner-occupiers Carla and Andrew decide to build a new home on a vacant block
Carla and Andrew decide to build a new home on a vacant block of land that they already own. The value of the vacant block is $400,000 and the building contract that Carla and Andrew sign is for $300,000. Carla and Andrew enter into the building contract on 4 July 2020 and make the first progress payment when construction commences on 2 August 2020.
The State that Carla and Andrew live in signs the HomeBuilder National Partnership Agreement on 23 August 2020 and starts to receive HomeBuilder applications through the revenue office on 27 August. Carla and Andrew apply for HomeBuilder via the relevant revenue office which conducts the eligibility checks and confirms that both Carla and Andrew are Australian citizens, over the age of 18, have a taxable income under $200,000 based on their 2018-19 tax returns, the value of the property (house and land) is less than $750,000, the contract was signed on or after 4 June 2020 and before 31 December 2020, and they have made the first progress payment. The revenue office approves the application.
As Carla and Andrew are not first home buyers, they are not eligible for the First Home Owner Grant, the First Home Loan Deposit Scheme or the First Home Super Saver Scheme.
If this new HomeBuilder grant puts you in a better financial position to make your property dreams a reality, request your obligation-free new home quote or visit one of our Display Homes to talk to one of our knowledgeable New Home Coaches.
You can also view our all-inclusive Home and Land Packages which match up our best designs with some of Queensland's most sought after blocks of land.
Other HomeBuilder Resources