The Australian Federal Government, last week, announced the Homebuilder Grant – a stimulus package set to ignite our property industry from now until the end of 2020.
For those eligible, the Government will grant them $25,000 to build a new home or substantially renovate an existing home, provided that construction commences within three months of the contract being signed.
Naturally, our emails and phonelines have been ablaze with inquiries as to how exactly this works and how this applies to prospective View Bank Homes’ homeowners.
Please note, all the information here is tailored specifically for prospective View Bank Homes’ buyers and therefore, will only be detailing the way in which the grant supports those who are purchasing new homes. We do not cover the way in which the grant supports those seeking to substantially renovate existing homes, nor those personally building their new home. Thank you for understanding.
What is the HomeBuilder grant and what kind of new homes does it apply to?
The HomeBuilder grant is a grant of $25,000 given to eligible owner-occupiers (including first home buyers) who build a new home or substantially renovate an existing home. The grant is only available for contracts signed from now (from 4 July 2020) to 31 December 2020, and construction must begin within three months of the contract date.
For prospective View Bank Homes’ buyers, this means that if you meet the eligibility criteria (detailed below) and buy a home that is currently under construction or buy a home off-the-plan (and construction begins within three months of the contract date), you will receive $25,000 from the Government.
And let’s not forget, Stamp Duty Savings still apply (as these homes are currently being constructed or yet to be constructed). Plus, if you are a first home buyer, you receive this $25,000 on top of the $10,000 First Home Buyers Grant. You can learn more about First Home Buyers Grant here.
Am I eligible for the HomeBuilder grant?
In order to be eligible for the $25,000 grant, you must meet the following criteria:
- You are an Australian citizen
- You are 18 years old or older
- You are a natural person – not a trust or a company
- You either:
- Are an individual earning less than $125,000 per annum based on 2018-19 tax return or later; or
- Are a couple whose total income is less than $200,000 per annum on both 2018-19 tax returns or later
- You enter a building contract from 4 June 2020 until 31 December 2020 to build a new home as a principal place of residence, where the property value does not exceed $750,000
- Construction must commence within three months of the contract date
I think I am eligible. What happens next?
Say you want to purchase a home currently being constructed, for example, one of the townhomes of Seven Eighty Five, Reservoir. Or perhaps you are want to purchase a townhome set to be built in the next few months (say, a home at our upcoming development, 62 Liston Avenue, Reservoir). Since all our properties currently on the market are under $750,000, all our properties meet the property value requirement.
Once the contract is entered into, your bank will apply on your behalf to the State revenue office of Victoria to receive the $25,000 grant. The revenue office will conduct eligibility checks and will review the application documentation. They will confirm you, or if you are a couple, that you both are Australian citizens, over the age of 18, and meet the income cap.
Since both properties are either yet to be constructed, or part-way through construction, you will eligible also for stamp duty savings. If you are a first home buyer, you will also be eligible for the $10,000 First Home Buyers Grant.
This is the perfect time for any of you who have been wanting to get into the property market. Having built in Melbourne’s North for over 30 years, we have never seen a Government Grant like this one.
If you are interested in purchasing a new home, you can learn more about our new development Seven Eight Five, Reservoir here. With 8 sophisticated two-bedroom town homes, just 12km from Melbourne’s CBD, in one of the most verdant pockets of the North, Seven Eighty Five is easy living at its finest.
For those wanting three-bedroom town homes, there’s also 62 Liston Avenue, Reservoir. These street-facing town homes have just gone on the market and are the ultimate off-the-plan purchase. You can enquire about this exciting opportunity here.