HomeBuilder has been extended – What does it mean?
The HomeBuilder grant released in June by the Federal Government was designed to keep the residential construction sector tracking along in response to the economic downturn caused by COVID-19, and it certainly also does a whole lot for affordability for new home buyers! And, it’s just got even better!
Essentially, it’s a $25,000 boost if you’re looking to build a new home, regardless of whether you’re a first, second, third or 100th home buyer. You do need to be over 18 years of age, the home needs to be your primary place of residence (for at least 6 months), and there are some income limits – in addition, the new home and land price cannot exceed $750,000.
Critical to making the most of this opportunity is the timeline involved. When first launched, the dates the HomeBuilder grant could be applied for included building contracts entered into between June 4 2020 and December 31 2020, with construction required to commence within 3 months.
Now, it’s been extended! It’s great news for new home buyers who weren’t quite ready to get the ball rolling.
BUT, don’t misunderstand, only the construction timeline has been extended – you now have 6 months from contract signing to get your home started – the last date for contract signing remains December 31 2020.
What does this mean?
To make the most of this $25,000 grant (and you should, while you can) you still need to get the process started now. You still need to factor in the time taken for the contract to be created and your colours and selections to be included, as well as getting your finance secured. This extension doesn’t mean put the foot and the brake and it definitely doesn’t mean you can sort this out next year – because you will miss out.
What it does mean is that you now have more choice available when it comes to finding the right block of land to start your dream home. Land that is titling later next year can now be back on your shopping list.
Here’s an example, if you sign your new home contract on December 31 2020, you now have until June 30 2021 to get your home started to satisfy the grant guidelines. If you are also a first home buyer, you may also be entitled to the 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. This opens a whole new world of opportunities!