If your homebuilding plans have been put on hold for the past few months due to COVID-19, we have some great news for you. The government is extending the $25,000 HomeBuilder grant to those looking to build a new home in 2021.
Whether you already have a block of land and just need a new home, or perhaps you need a complete home & land package, the $15,000 HomeBuilder grant will give you a boost to get into your new home sooner.
With Beechwood’s wide range of elegant home designs and value-packed home & land options, the HomeBuilder grant could enable you to consider both single storey and double storey designs. And it may even enable you to consider including a granny flat in your plans.
The extended grant is for $15,000 (a reduction from the original grant of $25,000) but some conditions are now easier to satisfy.
The HomeBuilder fine print
So, how can you qualify for the HomeBuilder grant? As with any type of grant or scheme, there are certain conditions applicants need to meet to be eligible.
To qualify for the $25,000 HomeBuilder grant, your new home can cost up to $750,000 (including land). You also must sign your building contract by December 31, 2020 and your construction needs to start within six months of the contract date.
To qualify for the $15,000 HomeBuilder grant, your new home can cost up to $950,000 (including land). You also must sign your building contract by March 31, 2021 and your construction needs to start within six months of the contract date.
Read the HomeBuilder fact sheet for more details.
Homebuilder grants are also available for substantial renovations like a Knock Down Rebuild of your existing home where the contract is between $150,000 and $750,000, as long as the total value of your renovated property is less than $1.5 million.
Another great thing about the HomeBuilder grant is that it is open to First Home Buyers, as well as second or third home buyers. However, unfortunately there are income caps for the grant. For individuals, the cap is $125,000 per annum based on your 2018-19 tax return and for a couple the cap is set at $200,000 per annum based on your combined 2018-19 tax returns.
Benefits for First Home buyers
There’s never been a better time for first home buyers to begin their journey to owning their first home. As the government is keen to help First Home Buyers get into their homes sooner, the HomeBuilder grant does not affect existing First Home Buyer schemes. That means that if you are eligible, not only can you receive the HomeBuilder grant, but you could also access a suite of other government incentive packages, as outlined below.
A $10,000 grant to First Home Buyers who have purchased a Brand New Home on or after 1 January 2016.
Gives First Home Buyers a reprieve from Stamp Duty in the form of an exemption or concession. On July 27, NSW Premier Gladys Berejiklian announced that for the 12 month period starting August 1, 2020, the Stamp Duty Concession will be extended to First Home Buyers purchasing newly built homes valued up to $800,000. Prior to August 1, 2020, the Stamp Duty Concession only applied to newly built homes valued up to $650,000.
As well as increasing the stamp duty threshold for newly built homes, for the same 12-month period the NSW government will also raise the threshold for stamp duty on vacant land, from$350,000 to $400,000.
Usually, first home buyers with less than 20% deposit will need to pay lender’s mortgage insurance. With this scheme, First Home Buyers can purchase their home with as little as a 5% deposit and the government will act as the guarantor on the remaining 15%. However, you may want to act quickly as there are a limited number of places within the scheme.
Introduced in the 2017-18 Federal Budget to reduce pressure on housing affordability, the FHSS allows you to save money for your first home inside your super fund.
Start your homeowner journey today with Beechwood Homes
However you are looking to utilise your HomeBuilder grant, you’ll find a fantastic range of home designs at Beechwood. We build in some of the most idyllic locations in NSW, from Port Macquarie on the mid-North Coast to Narooma on the South Coast. Contact us or visit one of our many display home locations to get started.